How to Write a Letter of Intent

Selling A Business - Get A Letter Of Intent Prior To Due Diligence

Dave Kauppi is the editor of The Exit Strategist Newsletter, a Merger and Acquisition Advisor and President of MidMarket Capital, representing owners in the sale of privately held businesses. We provide Wall Street style investment banking services to lower mid market companies at a size appropriate fee structure.

http://www.everyday-wisdom.com/l...

Turning Point Advisors, Llc

A Letter of Intent ("LOI”) is an important milestone when selling your business. However, is not the end of the road. When you are selling your business, a complete understanding of just what an LOI is will help you keep your deal on track, your emotions in check and your mind on running your business.

A Letter of Intent outlines the buyer’s general structure of its purchase of your business. The LOI states the buyer’s price and describes any contingencies that will need to be met before closing. It may also describe in general terms items such as how much you will receive at closing, how much, if any, you are being asked to finance, the length and interest rates of payments, earn-outs, training, timelines, restrictive covenants and post-sale consulting.

http://www.merchantcircle.com/bl...

Advice About Selling Your Business And Exit Planning

You’ve just completed the tiring process of negotiating the final Letter of Intent (LOI) and you think things are going to get easy.  Think again, because now the real work begins. From due diligence to close, you will become busier than you’ve ever been.  While it is tempting to get comfortable with the buyer, you should remember that everything remains one big negotiation. Hopefully, you have your team in place including a good M&A lawyer (not just a corporate attorney that also does M&A deals), a savvy accountant who will be worth their fees in tax savings, and an experienced M&A advisor to manage the process.

http://orioncg.wordpress.com/tag...

On Selling Your Business

Advice on Selling Your Business

Terry Stidham, President and Founder of Target Search Group. A Business Development Leader with extensive knowledge of the M&A process, combined with an in-depth understanding of the constantly changing global capital markets environment.  He has served as the head of entrepreneurial organizations as well as Fortune 500 companies.  He specializes with mid-market companies in a diverse array of industry sectors from service and manufacturing to technical and professional firms. 

http://sellmyco.blogspot.com/201...

The Business Law Blog

A blog about law, startups, business, and other items of interest

I have talked before about what makes up a term sheet (also known as a letter of intent) but now we should talk about why it is important.  Any time a business is being sold, the parties - but the buyer in particular - has to incur certain costs in anticipation of the deal, including due diligence costs and certain accounting and (ahem) legal fees.  Before a buyer expends those costs, it wants to have some assurance that they will be well-spent. But that doesn't always happen.  I had a client recently engage with the sellers of a business over the course of a couple of months.  Their on-again, off-again talks had finally started to reach a crescendo toward a deal.  We had begun work on a letter of intent and were ready to send it to the sellers when the email arrived - they sellers had sold to another buyer.

http://www.dryanlaw.com/trust-ma...