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

by a searcher from University of South Alabama

4 years ago

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

2 likes
327 views
19 comments

searcher from The University of Chicago - Booth School of Business

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 time###-###-#### days to complete due diligence and secure financing.

4 years ago | like reply | 2 likes

searcher from University of South Alabama

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.

4 years ago | like reply | 1 like

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