All- I've written the blog post below in response to several FAQ's I've received from prospective purchasers related to LOIs. Namely:(1) How liberal should I be in issuing LOIs? How early in the process should I issue them?
(2) If most terms within an LOI are non-binding, how useful can they be?
(3) Should LOIs be detailed, or written at a high level?
(4) Who should propose a valuation first: Buyer or Seller?
After reading this, I hope you'll leave with an enhanced appreciation for how savvy acquirors can utilize LOIs strategically, for purposes well beyond the simple act of papering their desire to purchase a company exactly as outlined in the document.
Link below. Happy reading.