Business broker is asking for LOI before I have lending secured...

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by a searcher from University of South Alabama
in Mobile, AL, USA

6yrs ago

Business broker is asking for LOI before I have lending secured...

What would be your response? I have explained what info would be outlined in LOI. Dumbfounded.

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reply by a searcher 6yrs ago
from University of South Alabama in Mobile, AL, USA

An IOI was sufficient at this point for the sellers. The rate limiting factor here is attaining an accurate valuation which is delaying offer. I intended to list offer price in LOI. Avoided it all with the IOI and still have exclusivity. Thank you all for your input/guidance.

reply by a searcher 6yrs ago
from The University of Chicago in Stamford, CT, USA

You can make the LOI non-binding (except for certain clauses like confidentiality and exclusivity) and subject to financing, final due diligence and approvals (if you need them). What you really want is get exclusivity for a period of timeredacteddays to complete due diligence and secure financing.