CHAPTER 11

THE LOI: A GENTLEMANS AGREEMENT

As you enter the Build the Deal phase of the acquisition process, you may be tempted to step back and let the lawyers and accountants take over. By now, you can see the finish line and you might imagine there are only technical details left to work out, best handled by the “experts.” I caution against this type of thinking. Throughout this phase, there are numerous opportunities to solidify the relationship you have built with the seller and enrich the synergies that will result from the newly formed business. The Letter of Intent (LOI) is the first of these opportunities. While it serves an important legal purpose, it also brings a new level of commitment and resolve to the deal.

In this chapter, we ...

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