At the LOI formation stage for a target company. As I draft the LOI Agreement I am considering how much detail to include. There appears to be two schools of thought around an LOI offering.

1. Simple & General
Approach: Cover the most important deal components with the benefit of increasing the chances of a signed LOI while possibly running into a deal-killer later in the process as the parties move to a Purchase Agreement. The main benefit is momentum which could help overcome issues that would otherwise kill the deal. The cost is time and due diligence expense.

2. Detailed & Specific
Approach: Include details on all known material components of the deal. Risk a rejection of the LOI but more quickly identify non-starters for each party. The main benefit of this approach is saving time and due diligence costs while possibly sacrificing deal momentum.

I would love to recruit thoughts on what searchers have seen as the most successful strategy at the LOI offering stage. Moreover, curious of any research that could provide a data-driven answer. Other ideas or strategies would be welcomed. Thanks in advance to your consideration in sharing your perspective.