Steps in the Acquisitions Process Every Founder Should Know

 

If you’re a founder considering selling your business, the Merger-Acquisitions process can feel overwhelming. Between deal jargon, financial scrutiny, and buyer negotiations, it’s easy to lose focus.

But understanding what to expect from first conversation to final closing can help you navigate the sale with confidence.

This guide walks founders through the full M&A process: the stages, players, documents, timelines, and decisions that will shape your exit.

Let’s break down the process step by step.

 

Step 1: The First Intro Call in the Acquisitions Process

The Merger-Acquisitions process often starts with an informal call from a potential buyer, advisor, or investor. This isn’t a pitch, it’s a conversation.

Expect to:

• Share a high-level overview of your business
• Learn about the buyer’s goals and background
• Discuss why you’re exploring a sale

 

Tip: Don’t show your full hand. Ask just as many questions as you answer.

 

Step 2: Signing an NDA and Sharing Financials in Acquisitions Process

If there’s mutual interest, the next step is signing a non-disclosure agreement (NDA). This protects sensitive information before deeper discussions.

Once the NDA is signed, you may be asked for:

• High-level financials (last 3 years revenue, EBITDA, margins)
• Customer or revenue breakdowns
• Org chart and team size
• Overview of operations and key systems

 

Buyers use this information to gauge potential fit, valuation range, and deal structure.

 

Step 3: Receiving (and Reviewing) a Letter of Intent (LOI) in Acquisitions Process

If things go well, the buyer will submit a non-binding Letter of Intent (LOI). This outlines:

• Proposed purchase price and structure (cash, stock, earn-out)
• Timeline for due diligence and closing
• Required exclusivity period
• Any deal conditions (e.g., financing, retention)

 

Review the LOI carefully it sets the tone for the entire deal. Make sure you understand:

• Whether the offer is based on cash-free, debt-free assumptions
• How working capital targets are defined
• If the deal includes a holdback or escrow

Many founders bring in an M&A advisor or attorney at this stage. It’s a smart move.

 

Step 4: Due Diligence in the Acquisitions Process

Once you sign the LOI, you’ll enter the most demanding part of the process: due diligence.

The buyer’s team will examine every corner of your business, including:

• Financial statements, tax returns, and bank records
• Customer contracts and revenue trends
• Legal and regulatory exposure
• Payroll, HR policies, and employment agreements
• Intellectual property and systems architecture

 

This is where your clean books and your Quality of Earnings (QofE) report really matter.

For an overview of how we support sellers here, visit our If you’re preparing for a sale, understanding the M&A Services page → VASL M&A Services

 

Step 5: Negotiating the Purchase Agreement

Once due diligence wraps, the buyer’s attorneys will draft a definitive purchase agreement (DPA). This legally binding document includes:

• Final purchase price and terms
• Representations and warranties
• Indemnification clauses
• Escrow or earn-out provisions
• Transition or consulting obligations post-close

 

Tip: Lean on an experienced deal attorney here. Small wording changes can shift millions in liability.

 

Step 6: Closing the Deal

Once both parties agree on terms, you’ll move to closing. This usually involves:

• Signing the purchase agreement and related documents
• Transferring shares or assets
• Receiving payment (cash, stock, escrow, or a combination)
• Initiating post-close responsibilities (handover, training, transition)

 

From first call to closing, the entire process typically takes 60–120 days but can stretch longer if diligence uncovers issues.

After closing, founders often stay on for 3–12 months to assist with transition or performance-based earn-outs.

 

Key Documents You’ll Encounter Along the Way

Throughout the M&A process, founders typically work with or prepare:

• Teaser deck or Confidential Information Memorandum (CIM)
• Financial model or projections
• Normalized P&L and adjusted EBITDA statements
• Quality of Earnings (QofE) report
• Working capital analysis
• LOI and Purchase Agreement
• Disclosure Schedules

 

Having clean, organized documents upfront reduces friction and keeps deal momentum strong.

 

Emotional and Strategic Considerations for Founders

Selling your company isn’t just a financial transaction it’s often personal.

Founders must navigate:

• Letting go of control and identity
• Team communication and morale
• Post-exit roles and responsibilities
• Financial planning and lifestyle changes

 

That’s why alignment both strategic and emotional matters as much as valuation.

 

Ask yourself:

• Does this buyer share my vision for the company’s future?
• Will my team be treated fairly post-sale?
• Am I ready for what comes next?

 

How Advisors Help Navigate the M&A Process for Founders

Founders don’t have to go through this alone. An experienced Merger-Acquisitions advisor can help:

• Position your business to maximize valuation
• Prepare data rooms, addbacks, and financial models
• Run competitive buyer processes
• Negotiate LOIs and final purchase terms
• Act as a buffer during tough conversations

 

Founders who work with advisors often receive 20–30% higher valuations than those who go solo.

Final Thoughts

Merger-Acquisitions process for founders is more than a transaction it’s a transformation.

Knowing what to expect from that first call to closing empowers you to:

• Stay in control
• Ask the right questions
• Protect your upside
• Exit on your terms

 

If you’re a founder thinking about selling, we can help you prepare, position, and close with confidence.

 

 

Book a 30-minute M&A consult: Here
Learn more about our advisory work at VASL M&A Services