Is it common to have financial struggles at the point of LOI

professional profile

February 05, 2021

by a professional from Embry-Riddle Aeronautical University in Orlando, FL, USA

Is it common when a firm adds to their portfolio and they are really strong at sourcing and engaging organizations through the NDA and LOI, but lack maintaining relationships and getting commitments from funding sources, at the LOI stage they scramble to put the finances together?


1
8
161
Replies
8
commentor profile
Reply by a professional
from Simon Fraser University in Toronto, ON, Canada
it happens quite often, often a strong operator may not have grown up in the PE/IB space... for this and may other reasons we created our buyside practice https://shaughnessy.group/search
commentor profile
Reply by a searcher
from Emory University in Atlanta, GA, USA
I agree with John. It shouldn't happen but can and there could be several underlying reasons. The more experience and familiarity both parties have with each other and/or the process, the less common it is to deal with buyer financial struggles at the LOI stage.
commentor profile
+6 more replies.
Join the discussion