Drafting an LOI

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by a searcher from The University of Chicago - Booth School of Business
in Chicago, IL, USA

2yrs ago

Drafting an LOI

Hello All,

I am getting close to drafting an LOI for an acquistion and would love to know, from anyone who has been through this before, are there any tips / best practices? I plan to use counsel, but want to do my own homework!

Thanks
Kevin

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reply by a searcher 2yrs ago
from Northwestern University in Madrid, Spain

Try to nail down what's important for you and keep as much flexibility in terms of adjusting price in the face of DD! What's been agreed in writting usually carries more weight than what has been said verbally

reply by a searcher 2yrs ago
from United States Military Academy in Bella Vista, AR, USA

Jason, thanks for posting your response. I was drafting an LOI a few weeks ago and your comments helped me shore-up a few specific points. Your point of view - the LOI is a framework for the purchase agreement - was new to me. It should be obvious, but well, we all learn in our own time I suppose! Anyhow, it was valuable for me to view it that way, and I made adjustments to my draft that made it stronger. Thanks again!