Knowledge Base

The most comprehensive, easy-to-understand source of information for selling a small to mid-sized business.

6 - Letter of Intent

The letter of intent is arguably the most important document in your sale and will form the basis of your transaction. Review our in-depth guide to the key clauses of the LOI, the most common mistakes sellers make in negotiations, and how to maximize your leverage before you sign.

The Term Sheet & Letter of Intent – Overview

Should I Take my Business Off the Market When I Accept an Offer?

Many sellers take their business off the market after accepting an offer. This is a critical mistake. We recommend keeping your business on the market until a definitive agreement is signed and all contingencies have been removed (unless you have signed a no-shop agreement with the buyer).

Earnest Money Deposit | M&A Basics

Earnest money deposits are common in small-business sales and less common in middle-market transactions. They demonstrate good faith by the buyer to show that they are serious about purchasing your business.

Negotiating the Letter of Intent

Negotiating the Letter of Intent

The price and terms you ultimately receive are affected more by how strongly you negotiate the LOI than by how strongly you hammer out the purchase agreement. Let that sink in.

M&A Negotiating Tactic #1 – Honesty

Is it possible to conceal a few warts on your business from buyers during the sales process? If you hide a few material facts that you should have disclosed, does the buyer have recourse if they find out about these facts after the closing?

A Guide to M&A Negotiating Tactics

High-level negotiating skills are not as crucial as you might think. And that’s good news for those of us not named Henry Kissinger, the former U.S. Secretary of State who’s widely considered one of the greatest negotiators in history.