A guide to the lifecycle of your acquisition, from granting access requests to closing with escrow
Last updated: July 24th, 2023
We'll update you with the progress of your acquisition by email and through your acquisition dashboard, My acquisition.
If you're ever unsure what's happening with your acquisition, just refer to the status on My acquisition. Below, is a guide to the different statuses and what they mean.
Buyer access requests
Access requested
A buyer has requested access to your startup. This means they want to view your private information. You can approve requests manually or automatically, and we recommend auto-approving since it can help you find the right buyer faster. It also saves admin.
Access approved
You've approved startup access to the buyer. Now that buyer can view your private information and chat with you. If you haven't already done so, an introductory message at this point can go far in moving your acquisition forwards and getting to know each other.
Access rejected
You've rejected the buyer's access request. The buyer can't view your private information or chat with you. While we think you'll sell faster by inviting more buyers to your acquisition, you might reject a buyer you think is a poor fit for your business, or if you're already in serious talks with another buyer.
Access suspended
You suspended a buyer's access to your startup. In other words, a buyer who used to have access doesn't anymore. You might do this after you've decided they're not a good fit or if another buyer has impressed you more.
Access revoked
A buyer with access has had their access revoked. This is most common when you accept a letter of intent (LOI) from another buyer. Accepting an LOI means you can't discuss your startup with any other buyers and those same buyers will have their access revoked.
Fielding offers
Offer sent
A buyer has made you an offer by sending you a letter of intent (LOI). You must now review this offer and then accept or reject it. We recommend chatting with the buyer before taking either action, just so both of you are on the same page and there are no surprises.
LOI accepted
You've accepted a buyer's LOI. You now negotiate with the buyer until you both agree on final terms, move to due diligence, and sign an asset purchase agreement.
Accepting an LOI means your startup is under offer. You can't speak to or share private details with any other buyer while under offer. Any other buyers with access to your startup will also have their access revoked in the meantime.
LOI rejected
You've rejected a buyer's LOI. Hopefully you explained why in your rejection message or subsequent conversations. The buyer can then negotiate with you or send a revised LOI for you to sign. Or, this could be the end of the road with this particular buyer.
LOI canceled
You or the buyer canceled the LOI. A buyer can cancel an LOI before or after you've accepted it, perhaps due to negotiating new terms, and you might simply be waiting on a revised version. Or, maybe you wanted to cancel the LOI for other reasons.
LOI suspended
Your LOI was suspended. This is usually when you've been sent multiple LOIs. Once you accept one, all the others are suspended.
Finalizing an APA
APA sent
You've received a buyer's asset purchase agreement (APA). You're moving into the final stages of your acquisition. Review the APA and then accept or reject it. Like the LOI, you can provide a reason for the rejection so the buyer knows what to do next.
APA accepted
You've accepted a buyer's APA, meaning you'll move to building an escrow transaction. The buyer will propose escrow details first, which you must agree to before transaction your acquisition on Escrow.com (or elsewhere).
APA rejected
You rejected a buyer's APA. This can happen if you need to make last-minute changes to the APA or it contains errors. Once signed, the APA binds you to closing with the buyer so ensure it's accurate.
APA canceled
You or the buyer canceled the APA. Since the APA can legally bind you to the acquisition, you should obtain permission from the buyer to cancel the APA. Likewise, the buyer should obtain your permission if they want to cancel it.
Escrow and closing
Waiting for escrow
You're waiting on the buyer to send you escrow details. Once these arrive, we'll notify you by email and your dashboard will also ask you review the proposed escrow details.
Escrow details sent
The buyer has sent you escrow details. Review these carefully from your dashboard by clicking View escrow details. You must accept these details to move the acquisition to closing on Escrow.com, or you can reject them and propose alternative details.
Escrow details rejected
You've rejected the buyer's proposed escrow details. If you have the buyer a reason along with your rejection, they'll hopefully be revising the details and sending them anew. Don't be afraid to communicate with your buyer during these critical later stages.
Escrow details canceled
Your buyer canceled the escrow details. If you didn't agree to the escrow details, and the buyer changed their mind or wants to revise their proposal, they can cancel the proposed details and send a revision.
Escrow in progress
You have agreed to the buyer's escrow details. You and the buyer will now accept terms on Escrow.com. The buyer will send funds to be verified on Escrow.com, and once you receive confirmation that the funds have been verified, transfer your assets.
Escrow completed
Escrow has finished and your closing payment is on its way! Once you receive your closing payment, please mark your startup as Acquire'd.
Acquire'd
Congrats! Your acquisition is now complete. You can archive your startup to deactivate your account and delete all your details.
Still need help?
Please search the help center again or contact us at support@acquire.com.