Process
A letter of intent is a document that sets out the main terms of a proposed deal, such as price and structure, before the final contracts are signed.
A letter of intent, or LOI, is the first written offer in a sale. It states price, how you get paid, who stays, and how long the buyer gets to finish its checks. Most terms are not legally binding. A few, such as confidentiality and exclusivity, usually are.
For example, an LOI might offer $30 million, with $24 million in cash at closing and $6 million in rollover equity. It might also give the buyer 60 days of exclusivity to finish due diligence.
The LOI matters because it sets the shape of the deal. Changing a term later is hard, and the buyer may re-price if diligence finds problems. Read every line, and ask your lawyer to review it before you sign.
Learn what to check in the letter of intent guide.
Related terms
Ready to get started? Let’s talk.
Tell us about your company and what you want next. Conversations are private, and there is no obligation.
Start a conversation