Mergers & Acquisitions

Resources: Glossary

Don’t be confused or intimidated by any terms or abbreviations in the M&A world. You’ll find answers here.

Letter of Intent (LOI)

Definition

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