FEE FOR LOI?
Good News: Exploring a company that checks all the boxes... Solid revenue/cash flows/EBITDA.
Bad News: The owner of the non-broker listed company wants a $50k fee to put the company into an exclusive Letter of Intent. They also would like to have the LOI time period be a short 14-days! If the company does not "check out" during LOI they keep the $50k.
Anyone have similar experiences and if so, how did you overcome?
Thanks in advance!
However, you might just consider doing most of the diligence pre-LOI. Sign an NDA and ask for the bank statements, quicken files, etc. while negotiating the LOI. Chances are pretty high that you'll find something to turn you off. If you go through all that and 1. still like the company, 2. can convince the seller to put the money into an escrow account, and 3. think the seller is honest, then maybe consider it.