M&A Glossary

Letter of Intent (LOI)

A preliminary agreement that outlines the essential terms of an acquisition and signifies the parties’ commitment to start due diligence and begin working toward a purchase agreement.

See Also

Due diligence, exclusivity, go-shop, NDA, purchase agreement

Tips

A letter of intent is replaced by a purchase agreement prior to closing.

Related Resources

M&A Basics | The Letter of Intent

M&A Closing Process | A Complete Guide

Selling Your Business?

Work with an industry leader that gets you results.

We invested over a decade perfecting every step of the process. The result is a method proven to reduce your risk and maximize your price.

View Our Process Now