Deal Lifecycle Interview Drill
This conversation was generated using Cook'd AI's career assistant and reviewed by Fallon Han from our editorial team for accuracy.
I'm a second-year finance master's student in Singapore targeting M&A roles at a mid-market advisory shop. I want a transaction interview that tests whether I actually understand the full deal lifecycle. Can we do a deal walkthrough focused on process, timeline, and why each party cares?
Absolutely. I will interview you like a finance recruiter would for a mid-market M&A seat. We will use one deal and follow it from origination to close, with emphasis on who is involved, what happens next, and why each step matters.
Let's start simple: walk me through a typical sell-side process for a founder-owned company. Please cover how the mandate starts, the teaser and NDA stage, the CIM, indications of interest, management meetings, LOI, due diligence, definitive agreements, and closing.
Okay. First, the advisor gets the mandate from the seller, usually the founder or shareholders. Then they prepare a teaser and send it to selected buyers. Interested buyers sign NDAs, and after that they receive the CIM with deeper financial and business information.
Next, buyers submit indications of interest. The advisor narrows the list and sets up management meetings for the best candidates. After that, buyers submit LOIs or term sheets. The seller picks one buyer and enters due diligence and negotiation of the SPA. Finally, once documents are signed and conditions are met, the deal closes.
Good structure. Now go one level deeper and tell me why each party cares at each stage.
For example, why does the seller want a teaser first, why does a buyer care about the CIM, and why does the advisor push for competitive tension before the LOI?
The seller wants a teaser first because it lets them test the market without revealing the company name too early. The buyer cares about the CIM because it gives enough detail to decide whether the opportunity fits their strategy and valuation range.
The advisor wants competitive tension before the LOI because multiple bidders improve pricing and terms. It also gives the seller more leverage and reduces the chance that one buyer can dictate the process.
That is directionally right. Let me challenge you with a practical transaction question.
Imagine the target is a Singapore-based B2B services company with stable EBITDA. The seller wants speed and certainty, but one buyer asks for a long exclusivity period before submitting a strong offer. How would you think about that request, and what risks does it create for the seller?
I would be cautious about granting long exclusivity too early. It can reduce competitive tension and weaken the seller's leverage if the buyer uses exclusivity to delay or retrade.
For the seller, the risk is losing momentum in the process and giving up optionality. If the buyer later finds an issue in diligence, they may push for a lower price or better terms. I would only support exclusivity if the offer is clearly superior on price, certainty, and closing speed.
Strong answer. Now let us test whether you understand diligence, since interviewers often ask what can actually break a deal.
Name three diligence areas that matter in a mid-market M&A process and explain what each one is trying to confirm.
First is financial due diligence, which checks the quality of earnings, working capital, and whether reported EBITDA is sustainable. Second is legal due diligence, which looks for ownership issues, contracts, litigation, and regulatory problems. Third is commercial due diligence, which tests the market position, customer concentration, and growth assumptions.
Each one is trying to confirm that the business is worth what the buyer thinks it is and that there are no hidden risks that would change price or structure.
Good. Final question: if you were presenting this transaction to me in an interview, how would you summarize the full deal lifecycle in a way that shows both process discipline and commercial judgment?
I want a concise answer, not a textbook list.