Deal Structuring, Letter of Intent
Once a serious buyer(s) is/are identified, the price, terms and other details of a final deal are hammered out. A Letter of Intent (LOI) is the formal document used to set forth the major transaction terms, confirmed in writing in order to prevent misunderstandings. The LOI must put to rest any outstanding issues concerning key employees, financing, legal matters, taxes, etc. It should also be constructed to protect you from buyer delays which can cause you to miss the window of opportunity for your sale. Based on the material in the CIM and on the updates from the management meetings, Buyer submits this detailed offer with a firm price