LOI Sample Letter for CA Homecare Deal

by a searcher

1 year ago

I am about sending a LOI for a CA Homecare agency deal and I have some concerns on the letter. I got it from my CFO and it does not specially address the duediligent process, periods and no clauses are included to cover base.  Since the seller did not send me any P&L and tax documents, I have to trust the business numbers from the owner who got it from his CPA Paperworks.  The seller likes to see the offer first and would have their CPA to send me tax documents after the year tax return filed. 

Anyone has a sample of LOI for buying California homecare agency non-medical caregiving business. I appreciate if you can share it with me. My email address is --@----.com  

 Thanks, and Happy Holidays!

Shannon Lee

1 like
211 views
15 comments

searcher from Florida International University - College of Business

This is a resource I use quite a lot. Look for Like companies in size, competitors ETC. It is free, you just need to create an account. https://www.glassdoor.com/Salaries/index.htm

1 year ago | like reply | 1 like

intermediary from Harvard University - Harvard Business School

Due diligence is what you make it. It doesn’t need to be covered 💯 in the LOI every step you intend to take to cover your due diligence. You could offer your due diligence as a separate document to be shared with the sellers on the items you need to review and investigate. There has to be a time period associated with both the LOI and your due diligence. You may want the sellers to not entertain other buyers while you are in the due diligence stage. They aren’t obligated but you can ask.
Typically clauses are written into the Offer to Purchase.
Don’t overcomplicate it. The LOI isn’t the place to get bogged down. Set deadlines for the documents you need. Get the year to date financials. Small business owners can be really bad with their paperwork. It can take months to compile if they don’t have it organized before they started the sell process.

1 year ago | like reply | 1 like

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