Navigating initial offers, management meetings, and Letters of Intent (LOIs) can be complex — here’s how to manage each step confidently to keep your deal moving forward.

Once confidential information is shared, interested buyers submit Indications of Interest (IOIs) — non-binding offers outlining price ranges, deal structure, and timelines. These early bids set the tone for negotiations but are based on limited information. Sellers should evaluate IOIs beyond price, considering payment terms (cash vs. earnout), buyer experience, and proposed timelines. This stage is also about narrowing the field to the most serious, best-fit buyers.

Following IOIs, sellers typically invite select buyers to management presentations and site visits. These meetings are your chance to sell the story behind the numbers, demonstrate operational strengths, and build trust. Preparation is key: anticipate tough questions, back up growth assumptions with data, and ensure your facilities and staff present well. These interactions often influence final offers more than the initial financial documents.

The process culminates in the signing of a Letter of Intent (LOI), a document that outlines the key terms of the transaction and grants exclusivity to the buyer for a specified period. While generally non-binding on price and final terms, the LOI formalizes buyer commitment and signals the start of detailed due diligence. Negotiating LOI terms carefully is critical — once exclusivity is granted, sellers often face pressure to complete the deal under those conditions.

By thoughtfully managing offers, presentations, and LOI negotiations, sellers maintain control, foster competitive tension, and set the foundation for a successful closing. We are around if you would like to learn more – please reach out.