Before you sign an LOI

What a letter of intent really commits you to

An LOI is usually called non-binding, but it sets the price, structure and timetable everyone will negotiate from.

Before signing, buyers should be clear on how the price is calculated, what is included, how long exclusivity runs and what diligence they will be allowed to do.

Getting these points right at the LOI stage costs far less than trying to renegotiate them once the seller has stopped talking to other buyers.

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