Josh explains why getting a Letter of Intent doesn't mean you can stop selling your SaaS business. He warns against exclusivity periods and stresses the importance of continuing sales efforts during due diligence to protect yourself if the deal falls through.
The biggest horror story that I hear pretty often we do our best at acquire to avoid this off market deals. Private equity firm hits you up, hey, we love your business. Here's an L OI but they don't know enough about it to really make a common decision. So then they lock you up an exclusive period. And then you go through intense due diligence and then they find one thing they don't like and they're like, oh, there's a lot of groups like that just, just to be aware of them. But the one thing about the LOI is I always recommend a pre loi call. We're just like, hey, Josh, like I have other offers on the T. Like just give me some assurance in terms of where this deal might fall out. Because if you sign, why you think the deal's over. It's not. The second piece of advice there, when you sign li, don't stop selling. You're going to have all the stuff that the buyer wants. But what you should also always do is record like a loom on how marketing works, how sales work, you know, get me excited. So when I find something I don't like, you just gave me all this other stuff that gets me excited. Upside in the business.
