Question 8 of 10

What if the seller changes their mind?

Before a term sheet, withdrawing costs little beyond the time invested and some awkwardness. After exclusivity has been granted, the buyer has spent money on an investigation and the position is different, although in most cases still not legally binding on the commercial terms.

After signing, withdrawal is a breach of contract with real consequences.

Owners who withdraw usually do so for the same reason: the decision was never fully taken, and the process forced it. That is an argument for spending longer on the first stage than on any other.