For everyone that's closed their first deal. How many LOI's did you submit?

searcher profile

November 16, 2023

by a searcher from New York University - Leonard N. Stern School of Business in Miami, FL, USA

Hi everyone,

I've found this site super valuable as I've embarked on a self funded search with my partner. I am posting to pose a question to the community: how many LOI's on different businesses did you submit before you had one get accepted?


2
6
40
Replies
6
commentor profile
Reply by a searcher
from Manhattan College in Port St. Lucie, FL, USA
Additionally, keeping a poker face throughout the process whereby you don’t tip your hand on your heavy interest. We had a seller willing to concede some major yet fair concessions only to have one of the syndication partners from the buyer’s team send a letter to the seller telling them how much they loved the business and how afraid of the seller’s legal team they were in the negotiations. Needless to say, the seller dug their heels and rescinded their consideration of any concessions.
commentor profile
Reply by a searcher
from Columbia University in New York, NY, USA
It depends on your approach. I see some people are like LOI-printing machines, submitting LOIs on every third opportunity they see, hoping that one will be accepted. This approach does create a really bad reputation for the entire search community. If you only submit LOIs for deals you are really serious about, every third will be accepted, per my experience. Since deals often fall apart, in my experience you need to have two-three signed LOIs to close a deal.
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