Asking price in LOI

searcher profile

May 09, 2024

by a searcher from University of Phoenix in Huntersville, NC 28078, USA

This is an elementary question, but this is my first LOI. Do I need to engage my accountant and attorney prior to an offer? Is there a rule of thumb for the counteroffer?

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commentor profile
Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA
I would recommend talking with someone and getting some assistance before issuing the lOI just to be sure you cover all of your bases. You do not want to get off on the wrong foot with the seller by forgetting something important with your LOI and needing to change it later. Also, if you need assistance analyzing the request from a financing perspective and being sure it is bankable the way you plan to structure your offer, we would be more than happy to assist you with that. We do not charge anything to help review deals. You can reach me here or directly at redacted Good luck with making your first offer.
commentor profile
Reply by a professional
from Georgetown University in San Diego, CA, USA
Joseph's answer is right on. I always recommend having a lawyer at least take a high-speed pass through your LOI to (1) make sure you are clearly communicating what you want the deal to be--despite all the jokes about legalese being unreadable, good lawyers are good at this, and (2) to make sure your structure makes sense and, if the SBA is involved, that they can fund the structure you are proposing / won't make any tough demands. For example, you can't buy 60% of a business without the 40% holders (the seller) giving a guaranty on your loan, which is usually a non-starter.
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