How many LOIs to get one deal done. Share to help.

searcher profile

August 25, 2023

by a searcher from London Business School in Mexico City, CDMX, Mexico

I wanted to do a poll here but could not figure it out, so please post your answer below:

- Have you closed a deal? If yes, how many LOIs did you submit?
- If you haven't closed a deal, how many LOIs have you submitted?

My answer is that Started the search in March###-###-#### I have not closed a deal and submitted 2 LOIs. I think I need to submit 5 LOIs to close one deal.

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commentor profile
Reply by an investor
from University of Missouri in Austin, TX, USA
There is no universal answer here, there are a lot of factors at play. For example, if you are submitting offers on listed or process deals this number could be higher. Sector matters as well - HVAC, plumbing, etc.. you may have to submit many LOIs or simply pay up.

My guess would be that a well-educated searcher probably submits 3-5 LOIs before something hits. Many times the searcher is simply learning themselves through the first few. It all depends, but I hope that is helpful.
commentor profile
Reply by a searcher
from Southwestern University in Houston, TX, USA
60%+ of deals fail after a signed LOI. The number of LOIs pitched to get one signed? For us, that probably averaged 4-8, but it's highly variable.

What all of this means is that you can't be hyper-focused on a single company. Have a bunch of companies at various places in the progress

This whole process takes longer than most people figure because of all if the humans involved. And they're all highly unpredictable.
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