LOI -- Sample Seller Note Terms/Language

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by a searcher from Northwestern University - Kellogg School of Management
in Redwood City, CA, USA

3yrs ago

LOI -- Sample Seller Note Terms/Language

Hi All,

I am looking for sample/template language for a contingent seller note to include in an LOI that is compatible with SBA financing. I understand the high level requirements but haven't seen any sample LOI's with contingency/forgiveness terms.

Thank you.
Mark

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555 Views

reply by a searcher 3yrs ago
in Chicago, IL, USA

I know “just make it up” isn’t a great idea, but the reality is that an LOI is non-binding and most effective to get them under aredactedday exclusivity period so you can dig in without them shopping around.

I always write LOIs in simple and plain language, if that helps.

reply by a professional 2yrs ago
in Boca Raton, FL, USA

It is a complete myth that LOI's are non -binding. They can be, but not always. There can be terms in it that in fact are binding, depends upon the language. Here's the rule for any business buyer - any legal document you plan on submitting or signing, have your attorney review it regardless of the deal size. If you are so inclined to start drafting legal documents yourself; which on its own is a crazy idea, unless you are using a template your attorney has previously provided for you and there are absolutely no other contingencies to be added. For example, use the template in lesson # 19 of our program How To Buy A Good Business At A Great Price at diomo.com with the appropriate contingencies subject to legal review.