A Seller’s Diary – Month 10 – Due Diligence

How many times do I have to answer the same question? We’re now in the thick of Due Diligence (DD) and the acquirers seem to have a never- ending list of advisors asking similar, if not identical, questions.

To be fair Prism warned me about this and said the best strategy was just to answer the questions and move on! Prism have reviewed the questionnaires and said it was pretty standard stuff. The acquirers appointed one of the big six accountancy firms to conduct the Financial Due Diigence, which frankly seemed like overkill, but they have been thorough, as have their lawyers. So far there have been no “deal killers” but they have asked for some customer interviews, which I understand, but would prefer not to provide. Prism have said that this is fairly normal practice but have made some good suggestions as to how to manage the process.

We have now received the first and second draft Share Purchase Agreement (SPA) and have a meeting next week with the acquirer and advisors to try to agree the final points. Prism seem comfortable that the process is going pretty well but have warned me that there are bound to be some further obstacles to overcome!

I have noticed some rather fancy travel brochures appearing on the kitchen table which seems a bit premature but nonetheless even I am starting to believe that it will happen!