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M&A Timeline Overview: From Prep to Close

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The M&A process typically spans 6 to 12 months, depending on the complexity and readiness of both the business and potential buyers. Below is a phase-by-phase breakdown you can use to manage expectations and plan strategically.

1. Preparation Phase (1–2 months)

Objective: Get your business ready for market.

• Initial Consultation & Valuation Benchmark

  • Meet with advisors to assess readiness
  • Conduct a business valuation
  • Benchmark against the market

• Documentation & Planning

  • Prepare financials, operational data, legal documents
  • Identify potential deal-breakers and resolve red flags
  • Develop marketing materials (CIM, teaser)

2. Go-to-Market Phase (1–2 months)

Objective: Generate interest from qualified buyers.

• Buyer Targeting

  • Identify strategic and financial buyer prospects
  • Create a short list and begin outreach

• Confidential Marketing

  • Send teaser under NDA
  • Share CIM with qualified parties
  • Conduct initial management calls or Q&A sessions

3. Indication of Interest (IOI) / Initial Offers (1 month)

Objective: Solicit and evaluate preliminary offers.

• Receive IOIs with valuation range and structure

• Evaluate buyer interest and strategic fit

• Select 2–4 top buyers to advance to diligence

4. Due Diligence & Letter of Intent (LOI) (1–2 months)

Objective: Dig into details and sign LOI with best-fit buyer.

• Due Diligence

  • In-depth review of financial, legal, operational data
  • On-site meetings and additional Q&A

• LOI Negotiation

  • Finalize terms: price, structure, timeline
  • Sign LOI and grant exclusivity

5. Final Diligence & Documentation (2–3 months)

Objective: Close the deal.

• Buyer performs confirmatory diligence

• Draft and negotiate the purchase agreement

• Finalize deal structure, earnouts, escrows

• Secure regulatory, board, or lender approvals

• Prepare for post-closing transition

6. Close & Transition (1 month)

Objective: Finalize sale and transition operations.

• Sign & close the transaction

• Conduct team and stakeholder communications

• Begin post-close integration or transition plan

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