How Long the Average Tech M&A Deal Takes to Close [Time Stats]

Tech M&A deals are exciting, but they rarely happen overnight. Founders often think that once an offer is made, the finish line is near. But in reality, the journey has just begun. In this detailed guide, we walk you through 30 powerful time-based stats that show just how long it really takes to close a tech M&A deal—and why. Each section below breaks down one key stat and expands it into detailed, actionable advice. Whether you’re preparing to sell your company or just want to understand the process, this guide will give you a crystal-clear roadmap.

1. The average tech M&A deal takes 4.5 to 6 months to close from initial LOI to final signature

The Journey from LOI to Close

When a buyer gives you a Letter of Intent (LOI), it feels like a big win. But don’t celebrate just yet. On average, it will take 4.5 to 6 months from this point to complete the deal. That’s a long time—and during this period, anything can happen.

There are three big phases in this journey: due diligence, negotiation of definitive agreements, and regulatory approvals (if needed). Each one adds friction and complexity. Even in small, clean deals, things can drag.

Why So Long?

One reason is that the buyer wants to verify every detail. They’ll look at your financials, contracts, intellectual property, customers, and more. If your records aren’t ready, expect delays. Also, legal back-and-forth can take weeks, especially if your company structure is complex.

Another time trap is coordination. Lawyers, bankers, accountants, and executives all have different calendars. Even simple tasks like setting a call can take days.

How to Speed It Up

Have a virtual data room ready. Populate it with clean, organized documents. This alone can shave off weeks.
Assign one person on your team to run point. Buyers love clear communication.
Lock down your cap table. If there are unknowns about who owns what, the deal will stall.
Be responsive. Every 24-hour delay on your end adds momentum loss.

Selling your company is not just about agreeing on price. It’s about staying on track and keeping energy high across a half-year marathon.

2. Due diligence alone takes 30 to 60 days for mid-market tech acquisitions

What Due Diligence Really Means

Due diligence is where the buyer goes deep. It’s not about trusting you—it’s about verifying everything. For mid-market tech companies (let’s say $50M–$500M in value), due diligence takes between 30 to 60 days on average.

They will review financials, legal risks, customer contracts, product roadmaps, codebase, HR policies, and even Slack messages. If your company touches sensitive data or regulated industries, expect more scrutiny.

What Slows It Down?

A few things:

Messy bookkeeping. If your numbers don’t reconcile or your books aren’t GAAP compliant, you’ll face questions—and delays.
Incomplete contracts. Missing NDAs, unsigned vendor agreements, or verbal customer deals? Expect pushback.
Code review issues. If your code isn’t documented, modular, or easy to understand, the tech diligence slows down.

Buyers bring in specialists for finance, legal, IP, HR, and sometimes cybersecurity. They’ll come with questions—and more questions after that.

Tips to Cut Time

Do a mock diligence review. Get your advisors to pretend they’re the buyer. This surfaces weak spots early.
Build a diligence tracker. List every doc requested and who’s responsible for uploading.
Get your legal team involved early. Waiting until week 3 is a recipe for fire drills.
Pre-answer common questions. This makes you look prepared and keeps things moving.

The best sellers run diligence like a project manager. That mindset turns a 60-day process into 30 days.

3. Deals over $1 billion take 8 to 12 months on average to close

Big Deals, Big Timelines

When a tech M&A deal crosses the $1 billion mark, the timeline changes. These aren’t just big deals—they’re complex systems involving thousands of stakeholders, regulators, and moving parts. On average, such deals take 8 to 12 months to get done.

Why? Because the size invites scrutiny. Investors, regulators, and media all want a say. And the acquiring company likely has to go through internal approvals across multiple departments, board votes, and legal reviews.

What Adds to the Delay

Antitrust review: In large deals, governments may ask for data to see if the merger will limit competition.
International issues: If the companies operate globally, approvals may be needed in Europe, Asia, or other regions.
Complex legal structures: Billion-dollar tech firms often have subsidiaries and legal entities in various countries.

It’s not uncommon for such deals to announce in January and close in December.

What Sellers Can Do

Get your house in order early. For big deals, the buyer will expect you to be due-diligence ready from day one.
Hire top-tier advisors. You need lawyers, bankers, and accountants who’ve done deals at this scale.
Prepare investor communication plans. If you’re public, your messaging matters.
Be ready for a media narrative. Big deals are news. Expect leaks and coverage.

If you’re a founder in a unicorn exit, remember: the stakes are high, and so is the timeline. Patience and preparation win the game.

4. Cross-border tech M&A deals take 20–30% longer than domestic deals

When International Borders Add Months

Cross-border deals sound glamorous, but they often come with hidden time costs. Whether it’s a U.S. firm buying an Indian SaaS company or a European acquirer targeting a Silicon Valley AI startup, these deals tend to take 20–30% longer than those within one country.

That means if your local deal would close in 5 months, expect a cross-border one to take closer to 6.5 months—and that’s being optimistic.

Why the Delay?

Different legal systems: Each country has its own corporate, labor, and data laws. Understanding and complying with both takes time.
Time zone mismatches: Simple communication gets harder when teams are working in different hemispheres.
Language and translation issues: Legal and financial documents often need to be translated or interpreted.
Cultural friction: The way due diligence is done in Japan, for example, differs from how it’s done in the U.S.

Also, foreign investment approvals can become a bottleneck. Countries like China, India, and the U.S. may require special filings if foreign control is involved.

How to Navigate It Smoothly

Hire local legal counsel: Don’t rely on your home lawyer for everything. You need boots on the ground.
Create a timezone-friendly communication plan: Set weekly calls that work for both teams. Don’t rely only on email.
Be aware of repatriation and tax laws: Closing the deal is one thing—getting your money out can be another.
Educate your board early: They may not be familiar with foreign compliance timelines, so prepare them.

Cross-border deals are absolutely worth pursuing, but don’t underestimate the timeline impact. With the right plan, you can keep things from spiraling.

5. Antitrust review adds an average of 90 days to large tech M&A deals

When Governments Hit Pause

If your tech M&A deal crosses a certain size or touches on competition-sensitive industries, antitrust regulators will want a look. For example, if a major cloud provider wants to acquire a rising AI chip company, regulators may wonder if the deal harms market competition.

These reviews, especially in the U.S. and EU, often add about 90 days to the process. That’s three full months of waiting—even if everything else is ready.

What Triggers a Review?

High combined market share: If the two companies together own too much of the market.
Industry dominance: If one player is already dominant and the acquisition would reinforce that.
Customer dependency: If the combined entity would control access to critical technology or infrastructure.

Even if the deal is eventually approved, the investigation period puts everything on hold.

How to Prepare for It

Anticipate it early: If you think antitrust could be an issue, start prepping before the LOI.
Prepare a pro-competition narrative: You’ll need to explain how the deal benefits customers, not just shareholders.
Get a competition lawyer: This is not a time for your general counsel to wing it.
Be transparent with timelines: Your team, investors, and advisors need to know that delays are normal here.

Don’t treat antitrust like a surprise. If you’re aiming to sell to a big tech buyer, it’s not a matter of “if,” but “when.”

6. Cybersecurity due diligence extends timelines by 10–20 business days

Security Takes the Front Seat

In tech deals, cybersecurity is now one of the most closely reviewed parts of due diligence. Why? Because no buyer wants to inherit a breach—or discover that customer data was being stored in plain text.

Adding 10–20 business days (about 2–4 weeks) is typical, especially if the buyer brings in a third-party firm to audit your security systems.

What They Look At

Past security breaches: If you’ve had a hack, how was it handled?
Encryption standards: Are your databases and file storage secure?
Access controls: Who has access to customer data, and how is it monitored?
Incident response plans: If something goes wrong, do you have a playbook?

A red flag in any of these areas can stall the deal or even lower the offer price.

How to Be Ready

Get a cybersecurity audit before you sell: It’s better to find issues yourself than have the buyer point them out.
Document everything: Policies, security protocols, employee training—buyers want to see it all.
Patch all known vulnerabilities: Make sure your software and servers are updated.
Limit admin access: Fewer people with control = less risk.

Security diligence is no longer optional. It’s expected—and being prepared can show the buyer that your business is trustworthy.

7. Tech startup acquisitions under $100M close in 45 to 75 days

Small Deals, Faster Closes

When it comes to smaller tech startup acquisitions—especially those under the $100 million mark—the timeline can be dramatically shorter. These deals often close in just 45 to 75 days.

Why the speed? In many cases, these are product or team buys, not full-scale company mergers. There’s less risk, less paperwork, and fewer stakeholders involved.

Common Traits of Fast-Closing Deals

Simple cap table: Few shareholders, fewer signatures needed.
Clean legal history: No lawsuits, no IP fights, no skeletons.
Strong founder involvement: When founders are aligned and cooperative, the process moves fast.
All-cash deals: No stock complications, which means less valuation negotiation.

Buyers like these deals because they’re low-risk. Founders like them because they offer a clean exit.

Tips to Close Fast

Don’t over-negotiate: If the offer is fair and you’re ready to sell, get to signature quickly.
Have clean financials: Even if you’re pre-revenue, show your burn rate, projections, and cap table in clear format.
Use experienced advisors: A lawyer who specializes in tech M&A can flag issues before they become delays.
Limit moving parts: Avoid complicated earnouts or retention structures unless necessary.

If you’re a startup founder, remember: simplicity is your friend. A clean business closes faster—and often at a better price.

8. 70% of tech M&A deals are completed within 120 business days

Most Deals Don’t Drag—If You’re Prepared

Despite the horror stories of deals falling apart or dragging for a year, the majority of tech M&A deals (70%, in fact) close within 120 business days. That’s about 6 calendar months.

This stat should offer some comfort. If your deal is structured well, your documents are ready, and there are no regulatory roadblocks, chances are you’ll be part of this 70%.

What Keeps Deals in This Window?

Responsiveness: Both sides show up, respond fast, and resolve conflicts quickly.
Clear deal terms: A clean LOI makes for fewer surprises down the road.
Experienced legal teams: Deals with top-tier counsel move much faster.
Mutual motivation: If both sides want the deal to happen, it usually does—on time.

The remaining 30%? That’s where you find delays from legal fights, missing documents, or indecisiveness.

How to Be Part of the 70%

Set a clear closing timeline in your LOI and stick to it.
Do pre-diligence prep before you even start talking to buyers.
Make sure your board is aligned so approvals don’t become a bottleneck.
Choose buyers wisely—a disorganized buyer can delay your close by months.

Tech M&A doesn’t have to be slow. Most deals are done within half a year. But you have to come prepared.

9. Regulatory delays impact 1 in 3 large-cap tech deals, adding 2–4 months

The Hidden Cost of Red Tape

For large-cap tech M&A deals, one of the biggest unknowns is regulatory review. About 1 in 3 of these deals face significant delays due to regulators getting involved. And when that happens, expect the timeline to stretch by 2 to 4 months.

This isn’t about someone forgetting a document. It’s about laws and oversight. Agencies like the FTC in the U.S., the European Commission, or other national authorities may step in to evaluate the deal’s impact on the market.

What Triggers These Delays?

Market concentration concerns: Regulators want to ensure the merger won’t hurt competition.
Foreign ownership: Countries may scrutinize who ends up owning critical infrastructure or data.
Sensitive sectors: AI, semiconductors, cloud services, and defense tech get more attention.
Citizen impact: Governments may intervene if the deal could lead to job losses or economic disruption.

Even after submitting all required paperwork, you may be asked for additional information, which restarts the review clock.

How to Navigate the Delays

Pre-clear the deal with regulatory experts before going public with it.
Plan for a long runway if your deal is large or touches sensitive industries.
Keep stakeholders calm with regular updates. Investors and employees don’t like silence.
Be transparent in your intentions. Trying to hide the deal’s real impact often backfires.

Regulatory delays are part of the territory for large-cap deals. You may not be able to eliminate them—but you can manage the fallout and stay prepared.

10. IPO-ready tech companies take 25% longer to acquire than bootstrapped firms

Polished But Slower

It might seem that a polished, IPO-ready tech company would close a deal faster. After all, the financials are sharp, the processes are refined, and the leadership is professional. But in reality, these companies often take 25% longer to get acquired.

Why? Because they’re big, layered, and full of complexity. There’s more diligence to do, more departments to audit, and more stakeholders to convince.

What Slows It Down?

Multiple internal systems: From HR to finance to CRM, buyers must understand how everything connects.
Board approvals: IPO-ready firms usually have a structured board that meets on a set schedule—not ideal for fast decisions.
Valuation debates: These companies often have higher expectations and more negotiation around deal terms.
Complicated cap tables: There may be investors with rights that slow or block a deal.

All of this adds time to the transaction—even when the company is buttoned-up.

Tips to Close Faster

Simplify your governance: If your board is too large or too slow, fix that early.
Be honest about valuation: Don’t chase IPO-level multiples unless your numbers back it up.
Pre-clear consents: Know which investors or stakeholders must approve a sale.
Keep your team aligned: Big teams mean more chances for internal disagreements.

If you’re IPO-ready, remember: you’re impressive, but not immune to deal delays. Speed requires simplification—even in large organizations.

11. Deals with earnouts or contingent payments add 15–25 days to close

When Money Comes with Strings

Earnouts and contingent payments are common in tech M&A deals, especially when there’s a gap between what the seller wants and what the buyer is willing to pay upfront. These clauses tie a portion of the deal value to future performance.

Sounds fair? It is. But it also adds 15–25 days to the closing timeline.

Why Earnouts Slow Things Down

More negotiation: You’re not just agreeing on price—you’re agreeing on how future results are tracked.
Measurement metrics: Revenue? EBITDA? User growth? Defining the target takes time.
Legal drafting: The more complex the earnout, the more contract language needed.
Post-close tension: Everyone wants clarity to avoid future disputes.

It’s not just about adding a paragraph to the deal sheet. It’s about aligning on how success will be defined and tracked—often years into the future.

What to Do About It

Keep it simple: The fewer variables in the earnout, the faster things move.
Use clear metrics: Pick KPIs that are easy to verify and hard to game.
Cap your downside: Know how much of your deal value is at risk and structure around it.
Plan for audits: Build in third-party audit rights if performance is disputed.

If you must include earnouts, be strategic. A clean earnout won’t kill your timeline—but a messy one will.

12. AI and data-sensitive acquisitions require 35% longer compliance timelines

The Data Dilemma

AI and data-heavy startups are hot acquisition targets. But they also come with one major challenge: compliance. Deals involving sensitive data or machine learning models often take 35% longer to close, mostly due to legal and regulatory checks.

Why? Because buyers want to be sure the data they’re acquiring was collected, stored, and used properly.

Where It Gets Complicated

GDPR and CCPA: If your users are in Europe or California, you need strict data controls.
Training data origins: Was your AI trained using third-party data you don’t own?
Bias and fairness: Buyers don’t want to inherit algorithmic bias that could trigger lawsuits.
Customer permissions: Did users actually agree to have their data used in this way?

Each of these requires extra review—and extra time.

How to Get Ahead of It

Run a data compliance audit: Do it before the buyer does.
Create a data map: Show where data lives, who owns it, and how it’s secured.
Fix consent gaps: If user permissions are missing or vague, update your policies now.
Document AI training sources: Keep clear records of what data was used to train your models.

AI is the future, but data compliance is the reality. Smart sellers start cleaning up their data practices long before the LOI hits the table.

13. 40% of failed tech M&A deals collapsed due to timeline overruns

Time Kills Deals

This stat is painful—but important. Around 40% of failed tech M&A deals didn’t break down because of valuation or strategy. They fell apart because they took too long.

Deals have momentum. When things slow down, people lose interest, priorities shift, and trust erodes. A delay of just a few weeks can snowball into a breakdown of confidence.

What Causes Timeline Collapse?

Slow responses: Taking days to answer emails or upload documents.
Internal misalignment: Teams disagreeing about terms or next steps.
Unclear responsibilities: No single person driving the deal forward.
Scope creep: The buyer keeps asking for more information, stalling momentum.

Each delay seems small—but they add up. And the buyer starts to wonder: if this company can’t manage a deal process, what else are they hiding?

How to Avoid Becoming a Statistic

Treat the deal like a product launch: Set deadlines, assign owners, and stay on track.
Have weekly stand-ups with your legal and finance team.
Give quick answers—even if it’s just “We’re working on it.”
Push back on endless requests: Be polite but firm. Every new question costs time.

Deals don’t fail in one big moment—they fail in a thousand little delays. Respect the timeline, and your odds of success go way up.

14. Median time to close SaaS acquisitions is 76 days

Why SaaS Deals Move Quickly

Software-as-a-Service (SaaS) companies have become some of the most popular acquisition targets in tech, and one reason is how clean and scalable they tend to be. Because they often run lean, have predictable revenue, and low physical infrastructure, their deals close faster. The median time to close a SaaS acquisition is 76 days.

This speed benefits both sides. Buyers want to integrate and realize synergies fast. Sellers want certainty before momentum shifts or competitors catch up.

What Makes SaaS Deals Efficient?

Subscription revenue: Recurring revenue is easy to model, which speeds up valuation.
Cloud infrastructure: No warehouses or hardware dependencies to review.
Simple business models: Buyers quickly understand what they’re acquiring.
Fewer employees: Smaller headcounts reduce HR complexity and legal exposure.

Buyers love SaaS for the visibility and consistency. Sellers benefit from how plug-and-play their business often is from a due diligence standpoint.

How to Maintain the Momentum

Have clean ARR and churn metrics: These are the first numbers a buyer wants to verify.
Organize contracts by customer size: Prioritize large accounts for review first.
Map your tech stack: Buyers will ask what’s custom-built versus third-party.
Offer sandbox access: Let buyers explore your product securely—this builds trust fast.

If you’re running a SaaS business, speed is on your side. Stay prepared, and you can close in under three months.

15. Hardware-focused M&A deals take 1.5x longer than software-only acquisitions

When Physical Products Slow the Process

Unlike software companies, hardware-focused businesses bring extra layers of complexity to an M&A deal. Supply chains, manufacturing risks, patents, and physical inventory must all be evaluated. That’s why these deals take 1.5x longer to close than software-only acquisitions.

For example, a software company might close in 75 days. A comparable hardware firm could take 110 days or more.

What Adds Time?

Supply chain audits: Buyers must review vendors, logistics, and delivery risks.
Inventory assessments: Stock levels, warehousing, and valuation need careful inspection.
Product liability: Any history of defects or recalls must be reviewed.
Manufacturing contracts: Agreements with factories or OEMs can be complex.

Hardware deals also require site visits, something that’s rarely needed for a software acquisition.

What Hardware Founders Should Do

Keep vendor contracts organized: Include SLAs, termination clauses, and pricing models.
Prepare cost-of-goods breakdowns: Show exactly where your margins come from.
Document quality control: Buyers want proof of manufacturing reliability.
Address import/export risks: Cross-border sourcing raises compliance issues.

If you’re building and shipping physical goods, prepare for a slower process. The key is transparency—get ahead of concerns, and the timeline won’t spiral.

16. Transactions requiring CFIUS review take 90–120 days longer

When National Security Gets Involved

If your deal involves a foreign buyer and your technology touches sensitive sectors like AI, semiconductors, cybersecurity, or telecom, then the Committee on Foreign Investment in the United States (CFIUS) may get involved. When it does, expect the deal to take 90–120 days longer.

This review is not optional. It’s a mandatory step for many foreign-involved U.S. tech deals, and skipping it could result in penalties—or a forced unwinding of the deal post-close.

What Triggers a CFIUS Review?

Foreign ownership: A non-U.S. buyer or investor is acquiring significant control.
Sensitive tech: AI models, chip technology, defense-adjacent products.
Critical infrastructure: Cloud, telecom, and transportation networks.
Data access: User data with national security relevance.

Even if your business is low-profile, CFIUS can intervene if the underlying tech matters.

How to Manage the Timeline Impact

Assess CFIUS risk early: Get legal counsel that understands the filing process.
File proactively: A voluntary filing is often safer than waiting for a knock on the door.
Be transparent: Trying to downplay the nature of your tech is a red flag.
Stay in close contact with regulators: Responsiveness reduces surprises.

If you’re targeting a U.S. exit and your cap table includes foreign entities—or your acquirer is overseas—this is a must-know step.

17. Public tech companies take 2–3 months longer to close than private ones

When Public Equals Slower

Selling or merging with a public tech company brings an entirely different level of scrutiny. There are shareholders to inform, filings to make, and regulatory hurdles to clear. On average, public tech deals take 2–3 months longer than deals involving only private companies.

That means even a straightforward transaction can stretch into 8 or 9 months, simply due to the legal and reporting structure required for public entities.

What Causes the Delay?

SEC filings: Disclosures and approvals must be filed and made public.
Shareholder votes: Many deals require formal approval from shareholders.
Investor relations: Communications must be carefully crafted and timed.
Market impact: A sudden drop in share price can affect the deal’s perceived value.

Every move made by a public company is under the microscope—by analysts, media, and regulators.

How to Navigate It

Work with public company advisors: They know the timing and compliance ropes.
Align on deal messaging: Missteps in communication can trigger stock volatility.
Build in timeline buffers: Don’t promise a close date that assumes zero delays.
Keep your team focused: Market pressure can create distractions internally.

If you’re selling to or partnering with a public company, prepare your timeline accordingly. It’s not a fast path—but it can be a very rewarding one if managed right.

18. Strategic buyers complete tech deals in 20% less time than private equity firms

Why Strategic Buyers Move Faster

When it comes to deal timelines, not all buyers are created equal. Strategic buyers—those acquiring for synergy rather than just investment returns—tend to move 20% faster than private equity firms.

If your deal would typically take 5 months with a PE firm, a strategic acquirer could wrap it up in just 4.

Why the Speed?

Fewer internal approvals: Strategic buyers often have dedicated M&A teams empowered to move fast.
Better alignment: The buyer usually understands your product, market, and tech stack already.
Less financial engineering: PE firms need time to build models and align funding structures.
Clear integration goals: Strategic buyers often know exactly how they’ll use your product post-close.

This alignment reduces back-and-forth and speeds up everything from diligence to decision-making.

How to Work Well With Strategic Buyers

Speak their language: Show how your company fits into their broader strategy.
Focus on integration readiness: Highlight your APIs, product roadmap, and team structure.
Clarify your leadership plans: Many strategic buyers want founders to stay on—be ready to discuss this.
Simplify the narrative: Make it easy for them to sell the deal internally.

If time is of the essence, a strategic buyer may be your fastest route to the finish line.

19. PE-backed portfolio exits average 100–140 days to close

When Private Equity Is the Seller

If your company is being sold by a private equity (PE) firm—meaning you’re part of a portfolio—expect the M&A process to take between 100 and 140 days. That’s about 3.5 to 5 months. While this is faster than public company deals, it’s generally slower than founder-led exits or strategic acquirer transactions.

PE firms are efficient and deal-savvy, but their process is layered. There’s more rigor, more documentation, and often more complexity in the capital structure.

Why PE Exits Take Time

Layered ownership: A portfolio company may have multiple investors, co-investors, or even rollover equity holders.
Detailed data rooms: PE firms usually present highly detailed financials, but it takes time to prepare and explain them.
Exit timing: Some PE firms try to time the market, delaying close based on economic shifts or fund cycles.
Negotiation posture: PE sellers are often very disciplined and may slow things down to squeeze more value.

While PE firms are professional sellers, they won’t rush. They prefer certainty and the best price over speed.

How Founders Can Help Speed Things Up

Know your structure: Understand liquidation preferences, earnout clauses, and payout waterfalls ahead of time.
Collaborate with the fund: Don’t try to lead the sale alone—sync with your PE firm.
Be ready for management presentations: You’ll likely have to present to several bidders.
Prepare your metrics: PE buyers want ROI clarity—show growth levers and margin expansion in your pitch.

If you’re in a PE-backed company, you’re likely working with professionals who’ve done this before. Use that to your advantage—but keep in mind that the timeline is rarely short.

20. Tech deals involving equity swaps close 30 days slower than all-cash deals

When Stock Complicates the Sale

Cash is simple. Stock isn’t. When an M&A deal includes an equity swap—where the seller receives shares in the buyer’s company instead of cash—the process typically takes about 30 days longer.

Why? Because equity adds layers of complexity, from valuation debates to legal structuring. The buyer and seller must agree not only on what the shares are worth today, but also what protections are in place for the future.

Common Equity Swap Issues

Valuation risk: Sellers worry the buyer’s stock will drop before or after closing.
Liquidity concerns: Can the seller actually sell the stock? When and how?
Voting rights and governance: Equity may come with influence—or without it.
Tax implications: Stock-for-stock deals have different tax treatments than cash.

Each of these needs to be clearly addressed in the definitive agreements. And that takes time.

How to Streamline an Equity Deal

Get a clear valuation report: Use third-party fairness opinions to align on pricing.
Negotiate a lock-up period upfront: Know when and how you can sell the shares.
Use stock as upside—not the core: If possible, ask for a strong cash component.
Bring in tax advisors early: Equity compensation can have surprising tax outcomes.

Equity deals aren’t bad—in fact, they can yield long-term value. But they will slow the deal. Know that going in, and plan your timeline accordingly.

21. Remote due diligence adds an average of 10 days compared to in-person reviews

Zoom Can’t Replace Everything

In today’s world, remote diligence is more common than ever. But that convenience comes with a small cost: it adds about 10 extra days to the deal timeline on average.

This doesn’t mean remote deals are inefficient—it just means there are more logistical delays, communication lags, and a lack of real-time discovery. When people can’t walk through your office or meet your team face-to-face, trust-building and verification take longer.

Where Remote Diligence Slows Down

Scheduling: Time zones, calendars, and video fatigue cause delays in setting meetings.
Team cohesion: It’s harder for buyers to evaluate culture and leadership virtually.
Data overload: Without real-time conversations, buyers tend to request more documents.
Demo delays: Product walkthroughs or tech deep-dives often hit snags online.

These small delays pile up. That’s where the 10-day gap comes from.

How to Make Remote Work Better

Over-prepare your data room: Eliminate the need for document hunting later.
Use guided video walkthroughs: Record product demos with voiceover explanations.
Keep a tight Q&A tracker: Track every question and respond quickly in writing.
Offer face time: Propose optional in-person meetings late in the process for buyer confidence.

Remote deals are efficient, scalable, and modern—but they still need structure to avoid timeline drag.

22. Acquihires close faster, averaging 30–45 days

When Speed Is the Strategy

In acquihire deals, the buyer isn’t acquiring your product or IP—they’re buying your team. These deals are among the fastest in the M&A universe, often closing in just 30 to 45 days.

That speed is intentional. Acquihires typically happen when the buyer needs talent fast—maybe to build a new division, accelerate hiring, or gain expertise. Since product integration or revenue is rarely the focus, diligence is lighter and decisions are quicker.

What Makes Acquihires Fast?

Few assets: There’s no need for long audits of code, customers, or contracts.
Simple structure: The buyer is often acquiring the company or doing individual employee offers.
Clear motivation: The value lies in the people, not the platform.
Retention is the goal: Closing fast helps keep the team intact and motivated.

Buyers want the team to stay energized and excited. Long negotiations risk attrition.

How to Prepare for a Clean Acquihire

Clarify employment terms: Work out base pay, equity, and bonus upfront.
Simplify the legal entity: Reduce layers that make a company harder to absorb.
Prepare your team: Be transparent early to avoid last-minute resignations.
Understand tax treatment: Acquihires often involve individual contracts—know the tax implications.

If your startup is heading toward an acquihire, speed is your biggest asset. Use it wisely, and you’ll have more leverage in shaping your team’s future.

23. Mid-size tech M&A deals ($100M–$500M) close in 3.5 to 5 months

The Middle of the Market, Not the Middle of the Road

Mid-size tech M&A deals are often overlooked in M&A conversations, but they make up the bulk of strategic transactions. And these deals, ranging from $100M to $500M in value, tend to close in about 3.5 to 5 months.

That’s faster than billion-dollar mega-deals, but slower than startup exits. It’s a sweet spot in terms of structure and speed.

What Shapes These Timelines?

Well-developed financials: Enough history to perform deep diligence, but not overwhelming.
Board involvement: More governance than startups, but faster decision-making than public companies.
Selective regulation: Less likely to trigger antitrust scrutiny unless it’s a major market segment.
Negotiation complexity: Often includes earnouts, equity, or founder retention packages.

Deals at this size tend to be large enough to matter but small enough to fly under major regulatory radars.

How to Manage the Middle Efficiently

Set milestone dates early: Align expectations with the buyer on when each phase should be complete.
Clarify deal structure in the LOI: The more you align upfront, the fewer surprises later.
Hire specialized advisors: Your cousin’s lawyer may not cut it at this scale.
Stay close to the numbers: At $100M+, small financial inconsistencies can delay weeks of review.

Mid-size deals are where most mature startups and scaling tech companies land. Own the process, and 4 months is all you need to seal the win.

24. M&A deals involving data privacy review (e.g., GDPR) are 28% slower

When Privacy Becomes a Dealbreaker

Data privacy laws like the GDPR in Europe and CCPA in California aren’t just compliance hurdles—they’re deal timeline busters. On average, deals involving in-depth data privacy reviews take 28% longer to close. That’s an additional one to two months in many cases.

Why the slowdown? Because buyers want to avoid liability. If your company collects, processes, or stores personal data—especially across borders—they want to know you’ve done it right.

What Buyers Are Looking For

User consent policies: Did customers explicitly allow you to collect their data?
Data retention and deletion rules: Are you keeping data longer than legally allowed?
Third-party processors: Who else has access to user data and under what terms?
Breach history and reporting: Any unreported or recent issues?

If these questions can’t be answered quickly and clearly, the deal stalls—or gets restructured.

How to Avoid the Privacy Pitfall

Audit your data: Know where it lives, who touches it, and why.
Map user consent flows: Show how and when users agree to data collection.
Limit access: Reduce how many systems or teams can view sensitive data.
Keep policies up to date: Privacy policies and terms should match your actual operations.

If you operate in Europe or deal with consumer-facing software, data privacy will be a spotlight issue. Own it before it owns your timeline.

25. 50% of buyers miss the initial close timeline by more than 3 weeks

The Closing Date Is Often a Mirage

Every M&A deal starts with optimism. “Let’s close in 90 days,” someone says. But in reality, half of buyers miss their original close date—often by three weeks or more. That’s not because they’re unmotivated. It’s because deal-making is messy.

Even well-planned deals hit delays: legal backlogs, financing changes, contract disputes, or team shifts can all nudge things off course.

Why Close Dates Slip

Over-optimism: Parties underestimate how long diligence or drafting will take.
New issues arise: A lawsuit, a customer defection, or a code bug can trigger re-evaluation.
Holiday blackouts: Certain months (especially December) are slow due to vacation schedules.
Approval delays: Boards and investors don’t always move quickly.

Missing a close date doesn’t mean the deal is doomed—but it can kill momentum if not managed carefully.

How to Keep the Deal Moving

Build buffer time: Always plan for a two-week cushion in your schedule.
Stay in weekly contact: Weekly check-ins create pressure and progress.
Close open items fast: Leave nothing pending longer than a few days.
Align incentives: Make sure your team is motivated to reach the finish line—quickly.

Every deal slips a little. The trick is catching the slippage early and adjusting quickly. Time lost is interest lost.

26. Negotiation of IP rights adds 12–25 days on average

Intellectual Property: The Deal Bottleneck

In tech M&A, intellectual property (IP) is often the crown jewel. Whether it’s your source code, trademarks, patents, or proprietary algorithms—buyers want to know exactly what they’re getting. That’s why negotiating IP rights can add 12 to 25 days to the timeline.

The delay isn’t because lawyers are slow. It’s because IP is nuanced. One clause can affect millions in value.

What Slows IP Negotiation?

Ambiguity: If you don’t know who owns your IP, it takes time to sort it out.
Employee IP: Did your developers sign agreements assigning rights to the company?
Open-source usage: Buyers want to ensure you’re not in violation of licensing terms.
Future usage rights: If you’re staying on post-acquisition, who owns new developments?

These questions take time to answer and even more time to get in writing.

How to Be IP-Ready

Conduct an IP audit: Know what you own and what’s licensed.
Centralize agreements: Developer, contractor, and vendor agreements should be easy to find.
Flag open-source code: Disclose libraries used, licenses, and any modifications.
Work with IP-savvy counsel: Don’t use generalists—get lawyers who’ve worked in tech M&A.

When it comes to IP, clarity is speed. The more you know about your own assets, the faster the deal can lock in.

27. Multi-party negotiations extend the timeline by up to 40%

More Voices, More Delays

When multiple parties are involved in an M&A deal—whether it’s multiple sellers, multiple buyers, or joint ventures—the process can take up to 40% longer. That means a 100-day deal can stretch to 140 days or more.

This happens because more people means more interests, more legal reviews, more side negotiations, and more scheduling issues.

Examples of Multi-Party Deals

Joint ventures: Where several companies pool resources or assets into a new entity.
Investor syndicates: Where multiple funds are involved in buying or selling.
Spin-offs: Where one part of a company is carved out for sale.
Mergers of equals: Where both sides are combining in a shared-control deal.

Each scenario adds complexity and requires careful choreography.

How to Avoid the Chaos

Appoint a lead negotiator: One person (or firm) should coordinate all sides.
Align on priorities early: Know what each party wants—and what’s non-negotiable.
Simplify where possible: Remove unnecessary decision-makers from the table.
Use shared workspaces: A shared data room and Q&A log reduces duplication and confusion.

Multi-party deals don’t have to be nightmares. But they must be managed with precision, or time will slip away quickly.

28. Closing extensions occur in 22% of cloud technology acquisitions

Cloud Deals Need Wiggle Room

Cloud technology companies are in high demand—but they also come with unique integration, security, and scalability concerns. That’s why nearly 22% of cloud tech M&A deals end up extending their closing deadlines.

These extensions usually range from 15 to 45 days and are often due to issues uncovered late in diligence, such as insecure architecture, service level agreement (SLA) risks, or gaps in uptime guarantees.

What Triggers Extensions?

Incomplete documentation: DevOps scripts, configurations, or APIs may not be well documented.
Third-party dependencies: Many cloud apps rely on external platforms that need legal review.
SLA liabilities: Buyers want to avoid inheriting uptime penalties or refund obligations.
Data residency concerns: Some data might be hosted in countries with restrictive laws.

Buyers are extra cautious here because outages or breaches post-close can damage their own reputation and value.

How to Reduce the Risk of Delays

Provide clear architecture maps: Show how your stack works end-to-end.
Document your SLAs: Include historical uptime, outage logs, and incident response times.
Secure your integrations: Check for token leakage, dependency errors, or third-party risks.
Run a cloud compliance review: This can catch issues before the buyer does.

Cloud deals don’t fail often—but they do pause. Tighten your infrastructure and your docs, and you’ll move faster.

29. Deals initiated via bankers close 15 days faster than those initiated in-house

Why Professional Help Speeds Things Up

When tech M&A deals are led by investment bankers or M&A advisors, they tend to close about 15 days faster than deals initiated internally by founders or corporate development teams. That’s because bankers bring structure, momentum, and expertise that helps sidestep delays.

They know how to create a process that gets buyers to move faster—and how to keep your team focused on the key milestones without getting lost in the weeds.

What Bankers Do Differently

Run a tight timeline: Bankers enforce deadlines and manage the pace like a sales funnel.
Qualify buyers early: They eliminate buyers who aren’t serious or financially ready.
Anticipate roadblocks: Experienced bankers know where deals typically stall and how to avoid it.
Manage emotion: M&A is stressful, and bankers help founders make clear-headed decisions without burning bridges.

Many founders think bankers are just for mega-deals. But even sub-$100M exits can benefit from their discipline and network.

How to Get the Most From an Advisor

Hire early: Don’t wait until you’ve already received a term sheet—bring them in before outreach.
Be open to guidance: Good bankers know how to position your business to different buyer types.
Let them manage the data room: They’ll chase document uploads and follow up on diligence questions for you.
Stay focused on your business: Let them handle the sale while you keep growth and revenue on track.

If speed matters to you—and it should—bankers may be the best investment you make during the sale process.

30. The fastest 10% of tech M&A deals close in under 45 days

The Exception, Not the Rule

Some tech M&A deals close incredibly fast—under 45 days from LOI to signature. These are the top 10% of deals in terms of speed, and they happen when everything aligns: motivated buyer, prepared seller, clean business, and no regulatory or IP surprises.

But let’s be clear: this is rare. These fast closes usually involve small transactions, acquihires, or bolt-on acquisitions that are strategic and straightforward.

What Makes a Lightning-Fast Deal Possible

Pre-negotiated terms: Some deals stem from long-term relationships where key issues were already discussed.
Simple structure: All-cash, no earnouts, no contingencies.
No external approvals: No board votes, no government filings, no debt.
Streamlined diligence: Clean financials, clean legal, clean code.

When all these stars align, closing in 30 to 45 days becomes possible.

How to Build for Speed

Keep your business clean: Every messy contract, outdated spreadsheet, or vague term slows things down.
Respond fast: Treat every request from the buyer as time-sensitive.
Limit the deal size: Smaller transactions are just easier to close fast.
Work with experienced legal teams: Your lawyer can make or break a fast close.

Fast deals are thrilling—but risky if done carelessly. If you aim to be in the top 10% for speed, prepare like a pro and don’t cut corners.

Conclusion

If there’s one takeaway from all these stats, it’s this: timelines are flexible, but preparation makes them predictable. The average tech M&A deal might take 4.5 to 6 months—but it doesn’t have to. The more clarity, control, and collaboration you bring to the process, the faster it can move.