Focus your LOI on the things that matter most.

The seller (and the seller’s broker for that matter) care most about: - Cash on close - Your perceived ability to close - The overall purchase price offer. Softer factors play a role but will not outweigh the above considerations. Of course, the seller wants you to protect his legacy and look after his employees. But he also wants to retire and travel. Don’t try to justify your offer. Let the offer speak for itself. If you are going to make a low offer—even if a low offer is fully justified—resist the urge to explain why. The seller is not going to care. Either he has offers at or above the asking price or he doesn’t. And if he doesn’t, your low offer may succeed. But not because you explained why his business is overvalued in your LOI. Building rapport with the seller is essential. Yet your LOI should not be the primary means of achieving this important goal. You should take the time to foster a meaningful connection with the seller as soon as possible. Yet this should be ongoing in the background. While your LOI can include a couple of brief statements reinforcing this process, it should not be your focus. If you need an LOI template to get started with your search, sign up for my newsletter at smb-transactions.com and I’ll make sure you receive a copy. Good luck!