What is the view on having multiple LOIs out at the same time? Do some consider it unethical given that it inevitably ties up at least one seller whose business won't be purchased? Or is it just part of acquisition entrepreneurship?
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1) An LOI is non-binding but typically grants you 90 days of exclusivity. If you are locking up multiple deals at the same time with the intention of only closing on one, then that is unethical.
2) When I ran my process, I would submit an LOI with a deadline, typically 2 or 3 days, and would tell the seller that I won't submit any other LOIs for that period but as soon as it expires, I will move on to the next deal. I believe this creates a sense of urgency but it also removes the risk mentioned above of the seller taking weeks to evaluate an LOI. That doesn't mean you should stop pursuing other deals for those 2-3 days, it just means you don't submit an LOI on any of those prospects.
3) If you really want to submit multiple LOIs at the same time, the only way to do it in an ethical manner would be to tell the seller you were doing so and define how you will choose if multiple LOIs are accepted. For example, you may say you will move forward with the first signed LOI, or the one that has the best terms, etc.