A recent listing was attractive enough that more than sixty buyers signed an NDA inside two weeks. Six letters of intent came in, all at or above an aggressive asking price. Plenty of other interested buyers were willing to pay that price and were never seriously considered.
What separated them
Not money, and not enthusiasm. The buyers who were passed over could not act:
- No introduction to an M&A attorney, so no letter of intent could be produced promptly.
- No banking relationship and no pre-qualification, so their capacity was an assertion rather than a fact.
- No personal financial statement and no bio, so there was no way to portray how strong they actually were.
Sellers are underwriting you
A seller and their advisor are not simply taking the highest number. They are asking whether this buyer is financially qualified, whether financing is obtainable, whether they understand the process, whether they can move quickly — and above all, whether they are likely to actually close. A deal that falls apart after sixty days costs the seller momentum, confidentiality and often the next-best buyer.
Get ready before you find it
Build the bio. Prepare the personal financial statement. Establish lending relationships early enough to understand your real capacity, compare structures and obtain a pre-qualification. Identify the attorney before you need one. None of it requires having found a business yet — and all of it is impossible to do well in the week the right one appears.