Confirmatory Due diligence is typically a 2-4 month process. It can start with a formal quality of earnings (QofE) (link) or amplified financial vetting of your business. This is to ensure the financials we presented were accurately portrayed. Thereafter, a buyer will typically begin clinical, human resources, and legal diligence. Once the information presented is confirmed, the buyer will begin drafting the purchase agreement (PSA) (link). If the information is inaccurate, the buyer may want to adjust the commercial or legal terms of the agreement. All buyers spend time and money to establish confidence in what they are buying. Due Diligence is can be very onerous (attach Standard Due Diligence Request List). We establish a Data Room for sharing of information. The majority of the time between an LOI and a close is spent in this process. To ensure that security and keep the information organized intermediaries will utilize a Virtual Data Room (“VDR”). This is a secure storage tool, which is administrated by the seller’s representative. Only those parties who are formally invited will have access to the VDR.