Startup Funding Espresso The Letter of Intent in M&A
The Letter of Intent in M&A Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In an M&A transaction, the letter of intent or LOI defines the general terms of the deal. Here are the key components of an LOI: Key players -- define the buyer and seller in the deal. This makes clear who is buying whom.\xa0 High-level overview -- defines the structure and key numbers for the transaction including earnouts and timelines.\xa0 This also includes cash versus stock offers and general terms of the deal.\xa0 Diligence -- this gives a general indication of diligence to be done. These tend to be standard boilerplate descriptions of the diligence process.\xa0 Exclusivity -- a timeframe for the buyer to perform diligence. The seller cannot entertain other offers during the exclusivity period which typically lasts 90 days.\xa0 The LOI indicates the buyer is serious and may soon initiate diligence.\xa0 It\u2019s a key milestone in the M&A process.\xa0 \xa0 Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. Let\u2019s go startup something today. _______________________________________________________ For more episodes from Investor Connect, please visit the site at: \xa0 Check out our other podcasts here: \xa0 For Investors check out: \xa0 For Startups check out: \xa0 For eGuides check out: \xa0 For upcoming Events, check out \xa0\xa0 For Feedback please contact info@tencapital.group\xa0\xa0\xa0 Please , share, and leave a review. Music courtesy of .