Letter of Intent (LOI)

A Letter of Intent (LOI) is a document a buyer submits to outline the proposed price, structure, and timeline for an acquisition, signaling serious intent before full due diligence begins. Most terms are non-binding, though exclusivity and confidentiality clauses usually bind both parties. For example, an LOI might propose a purchase price, a 30-day exclusive diligence window, and an earnout structure, giving both sides a framework to negotiate before legal costs mount.