An M&A process timeline is usually drawn as evenly spaced phases and is experienced as two long waits with bursts of work between them. Knowing which two changes how a process is resourced, because the instinct is to staff the negotiation and the negotiation is not where the months go. This page sets out the steps in order and marks the two that consume the calendar.
Preparation: the first long wait
Nothing goes to market until the materials exist, and the materials depend on information the client produces while running a business. The CIM is 121.2 hours and $11,514 of adviser time on this site's arithmetic, and the client-side elapsed time is usually longer than that. Starting the information gathering before the mandate is signed is the single biggest available acceleration.
In market: short, if the clock holds
Approaches, NDAs, CIMs out, questions answered, indications in. This phase is quick when the timetable is real and stretches indefinitely when a deadline slips for one party, because the competitive behaviour that made it quick depends entirely on the belief that others are moving too.
Selection and exclusivity: a decision, then a clock
Management meetings, a second round, one LOI. From signing, the seller has thirty to ninety days with one counterparty and no competition, which is why the length of exclusivity is worth negotiating harder than a small movement on price.
Diligence: the second long wait
The request list, and mostly waiting rather than working. On the worked example, 68.4 open requests chased at 0.4 hours a week over six weeks is 164.16 hours and $15,595.20, which is the adviser's side alone. A seller who prepared during exclusivity closes weeks earlier.
Questions people ask about m&a process timeline
How long does an M&A process take?
It is dominated by preparation and post-LOI diligence, both of which are gated by information the client has to produce while running the business.
What is the biggest available acceleration?
Starting the information gathering before the mandate is signed, so the materials are not waiting on a client who is also running a business.
Is the negotiation the bottleneck?
Rarely. By the time both sides negotiate in detail they both want the deal. Staffing the negotiation and not the request list is the common mistake.