.png)
Hiring an M&A advisor is one of the most consequential decisions an owner can make. It signals that the business is entering a new chapter—one that requires preparation, strategy, and precision. From the moment the engagement letter is signed, the first 90 days become the foundation for everything that follows.
This period is where groundwork transforms into opportunity. It’s when the advisor and the seller align on goals, collect and analyze data, identify potential value enhancements, and position the business to enter the market at full strength. What happens in these early weeks can determine not only how quickly the process moves, but how much value is ultimately realized.
The engagement begins with alignment. The advisor’s first objective is to understand the business from every angle—financially, operationally, and culturally. This discovery process is not just about data collection; it’s about building context.
During these initial weeks, the advisor meets with ownership and key executives to discuss goals, timing, and expectations. Are you seeking a full exit or a partial recapitalization? Is continuity for employees a top priority? How flexible are you on structure or timing? The answers shape the deal strategy.
At the same time, advisors begin to collect core financial documents: historical statements, forecasts, tax filings, and management reports. They analyze performance trends, margins, customer concentration, and recurring revenue. This internal diligence allows the advisor to assess the company’s readiness for sale and identify any gaps that should be addressed before going to market.
In parallel, the advisor starts outlining the market positioning strategy—the narrative that will define how buyers perceive the company. This includes clarifying its unique value drivers, competitive advantages, and future growth opportunities. That story will later become the backbone of the marketing materials and confidential information memorandum (CIM).
The early strategy phase is also where advisors determine valuation parameters. Using comparable transactions, industry multiples, and market data, they provide a realistic estimate of enterprise value. This is not a hard number, but a guide—an informed view of where the market is likely to respond.
By the end of the first three weeks, the advisor and seller have a shared understanding of goals, value expectations, and next steps. The process moves from exploration to execution.
Once the strategic direction is clear, the advisor begins formal preparation. This phase focuses on documentation, presentation, and readiness.
The centerpiece of this stage is the Confidential Information Memorandum (CIM). This document tells the company’s story in professional, investor-friendly language. It includes detailed financial analysis, operational insights, market context, and forward-looking growth plans. The CIM must strike a balance—informative enough to build confidence, yet concise enough to maintain engagement.
Creating the CIM is a collaborative process. The advisor drafts the document based on management interviews and data provided by the company, while the seller reviews and refines it to ensure accuracy. This back-and-forth typically lasts several weeks and ensures the final product reflects both authenticity and professionalism.
During this period, advisors also prepare the financial model—a detailed projection that aligns historical performance with forecasted growth. Buyers rely on this model to evaluate returns, so accuracy and clarity are critical.
Meanwhile, the advisor conducts a “mock diligence” review—identifying issues that buyers might flag later. This could include contract inconsistencies, customer dependencies, or outdated compliance records. Addressing these early avoids surprises later that could delay or devalue the deal.
By the midpoint of the 90 days, the foundation is nearly complete: the materials are developed, the numbers are validated, and the narrative is ready. The next step is to prepare for launch.
With the business positioned, the advisor turns attention to building the buyer universe. This phase involves rigorous research and segmentation to identify the most qualified and motivated acquirers.
The advisor compiles a list of both strategic and financial buyers—companies and investment groups with clear reasons to pursue the acquisition. Each potential buyer is vetted for financial capability, industry alignment, and transaction history. The goal is not volume, but precision: the right 30–50 targets are far more valuable than an unfocused list of 200.
The advisor then prepares the anonymous teaser, a short one-page summary highlighting key attributes—industry, size, growth, and profitability—without disclosing the company’s identity. This teaser will be used for confidential outreach.
Simultaneously, the advisor develops a timeline for the outreach process. This includes planned dates for teaser distribution, NDA collection, CIM release, management meetings, and submission of initial offers (known as indications of interest or IOIs).
This structured plan is crucial. It communicates to buyers that the process is organized, competitive, and time-bound—creating the momentum and discipline that lead to better results.
The final month of the first 90 days is where preparation turns into execution. The advisor initiates discreet outreach to the targeted buyer list, managing confidentiality with precision. Interested buyers are required to sign NDAs before receiving any identifying information or detailed materials.
Once NDAs are in place, the CIM and financial model are distributed to serious prospects. Advisors monitor engagement closely, tracking who opens materials, what questions they ask, and how quickly they respond. These signals help prioritize buyers for follow-up and potential meetings.
During this period, the advisor acts as the seller’s voice in the market. They field inquiries, clarify information, and gauge the level of seriousness from each party. The seller remains insulated from the noise of early-stage negotiations, allowing them to focus on operations.
The goal of this phase is to generate competitive tension—multiple buyers reviewing the opportunity simultaneously, each aware that others are doing the same. By the end of the first 90 days, several active discussions are underway, and the stage is set for the first round of preliminary offers.
Throughout this period, the advisor operates as strategist, project manager, and negotiator-in-waiting. They set cadence, coordinate stakeholders, and ensure the process maintains both speed and quality.
Communication is continuous. Weekly or biweekly check-ins keep the seller informed of progress, next steps, and early market feedback. Transparency builds trust, and trust allows decisions to be made quickly when opportunities arise.
A key benefit of professional management during these first 90 days is confidence. Sellers gain reassurance that every detail—from financial presentation to buyer outreach—is handled with expertise. This confidence translates directly into leverage once negotiations begin.
The first 90 days are also when the advisor earns the seller’s trust. The advisor’s responsiveness, diligence, and market knowledge set the tone for the partnership ahead. When the seller feels supported, the process becomes collaborative rather than reactive—a critical distinction in complex transactions.
The opening phase of an M&A engagement does more than prepare the company—it defines the market’s first impression. Buyers can tell immediately whether a process is professionally managed. When materials are polished, data is clean, and communication is structured, they respond with respect and urgency. When a process feels improvised, buyers take their time—and often, their bids reflect that uncertainty.
The first 90 days also determine momentum. Deals that launch in a coordinated, well-paced manner tend to sustain interest through diligence and negotiation. Those that start slowly often lose energy before reaching serious offers.
Finally, this early phase establishes leverage. By controlling information and timing, advisors ensure the seller stays in command. The market reacts to the process, not the other way around.
By the end of the first 90 days, a properly run engagement produces tangible results: the company is packaged, the market is engaged, and the first offers are on the horizon. What began as an abstract goal—“sell my business”—becomes a structured path toward a successful exit.
Owners who understand what to expect during this period approach the sale with confidence. They know that every step serves a purpose: preparation builds credibility, positioning drives interest, and structure creates competition.
The first 90 days are not just administrative—they’re strategic. They set the stage for everything that follows, determining whether the process unfolds smoothly or becomes a struggle.
Every successful business sale starts with a strong foundation. The first 90 days of an M&A engagement are where that foundation is built. It’s a time of alignment, preparation, and momentum—when vision turns into strategy and strategy turns into action.
For business owners, understanding this early phase eliminates uncertainty and reinforces trust in the process. With the right advisor, those first 90 days become the launchpad for a sale that delivers not just financial reward, but a sense of accomplishment and closure.
At M&A Solutions, we guide our clients through this critical early stage with precision and clarity—ensuring every detail supports the ultimate goal: a smooth, competitive, and rewarding transaction.
.png)
