Successful Acquisitions

THE PRE-LOI PRESENTATION

Before my clients present a draft Letter of Intent to a prospect, I suggest they create what I call a “Pre-LOI Presentation” to ensure that both sides are on the same page. After intense negotiations on the framework of the business, and even with everything written down, there are sometimes miscommunications or misunderstandings on issues. This presentation can smooth out the wrinkles. It usually takes the form of a PowerPoint, though a flipchart can also be used. Typically, there is no leave-behind version. The Pre-LOI Presentation specifies everything on which agreement has been reached, as well as those points on which the two sides haven’t yet come to an accord. It thereby creates an opportunity for the seller, in ...