With your decisions about the price you are willing to pay for the prospect and the key terms of your proposed deal, you are ready to make an offer. This is a big step. If your offer is accepted, you will spend much of the next several months completing the transaction and then, perhaps, a significant period of your life managing the business.
The offer itself takes the form of a formal letter of intent (LOI). In this document, you’ll state your proposed deal terms, including an initial offer price and the specifics of the next phase of the acquisition. Ideally, the seller will accept your LOI by formally signing it, but more often, some negotiation has to happen first.
Letter of Intent (LOI)
Your LOI is a detailed agreement ...