Comply with Due Diligence Requests
Most Borrowers underestimate how long the due diligence process actually takes. Under any circumstances, it will be important to comply fully and hopefully quickly with all reasonable requests of the potential Lender. Be prepared for (and don’t get frustrated by) boilerplate due diligence lists that may or may not be applicable to your company. If a request is irrelevant or inapplicable, simply explain why.
What Delays Due Diligence?
- The Borrower’s preparedness and availability to support due diligence
- Whether or not the Lender is busy with other deals
- Whether or not outside reviewers are used
- How many questions arise, and how successfully those questions are answered
- The length of time it takes to write the due diligence report, present it and finance the deal to their board or acquisition committee
Due Diligence Borrower Conduct
- Appoint one due diligence coordinator to:
- Work with outside due diligence teams
- Collect and review all requested materials
- Monitor Lender questions, requests and meetings to ensure open items get closed
BorrowPQ provides template definitive agreements for your use within your borrowing process (must be reviewed and approved by your attorney).
PQ can provide a list of preferred third-party advisors for Step 11 including Tax Consultants, Lawyers, Accountants and more.
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