A Letter of Intent (LOI) is a non-binding document that outlines the key terms of a proposed acquisition - purchase price, structure, timeline, and conditions. An LOI signals serious buyer interest and typically triggers an exclusivity period where the seller cannot negotiate with other buyers.
Definition
Understanding Letter of Intent (LOI)
A Letter of Intent (LOI) is a non-binding document that outlines the key terms of a proposed acquisition - purchase price, structure, timeline, and conditions. An LOI signals serious buyer interest and typically triggers an exclusivity period where the seller cannot negotiate with other buyers.
Related Concepts
Related Terms
- Due diligence
- M&A
- Enterprise value
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