A Letter of Intent (LOI) is one of the first formal steps in buying or selling a business. It sets the groundwork for negotiations, outlining key terms and demonstrating serious intent from both buyer and seller. At BizBroker+, we provide resources to help you draft clear and effective LOIs.
What is a Letter of Intent?
An LOI is a non-binding document that summarizes the preliminary terms of a potential business transaction. It’s not the final contract but serves as a roadmap to guide further negotiations.
Key Elements to Include in Your LOI
Proposed Purchase Price – Clearly state your offer.
Due Diligence Timeline – Specify how long you’ll review financials and operations.
Confidentiality Agreements – Protect sensitive business information.
Non-Binding Language – Clarify that the LOI is not legally binding.
Financing Terms – Include details about down payments, loans, or seller financing if applicable.
Why It Matters
A well-written LOI:
Signals serious intent to the seller
Gives the seller confidence to share financial and operational information
Aligns both parties on key terms before drafting a formal purchase agreement
Helps avoid misunderstandings and keeps negotiations on track
Tips for Writing an LOI
Keep it simple and clear
Focus on major terms rather than every detail
Use professional formatting and language
Consider using BizBroker+ templates for consistency and guidance
Get Started With BizBroker+
At BizBroker+, we provide a Letter of Intent template and expert advice to help brokers and buyers move deals forward with confidence. Whether you’re listing a business or looking to buy, our resources make the process smoother and more transparent.
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