Letter of Intent (LOI)
Glossary term: Letter of Intent (LOI)
Letter of Intent (LOI)
A Letter of Intent (LOI) is a written agreement between buyer and seller that sets out the main terms of the planned transaction before the detailed purchase contract is negotiated. The LOI creates legal certainty and a framework for negotiation.
Typical contents: purchase price or valuation range (e.g. EV/EBITDA multiple), payment terms (cash, earn-out), exclusivity, deadlines until main contract signing, and the obligation to conduct due diligence.
Our LOI clauses article gives a detailed overview. In the Manufacturing case study we describe the process until LOI signing. On closing support and M&A advisory. Further transactions.