Step 2 – Letter of intent
What Is It
A general framework declaring your desire and intent to acquire the business in question.
To establish between yourself and the seller an agreed upon price, an exclusive timeframe to perform due diligence and verification of information, and any requested terms for a final agreement.
- Quiet Light Brokerage is able to provide a standard letter of intent or you may provide one of your own
- An offered purchase price should be listed as well as a target closing date.
- Any special terms that you need should be included with the letter of intent.
- A refundable earnest deposit is normally required. The amount will vary from transaction to transaction.
- If the seller agrees to your letter of intent, you would enter into an exclusive time period in which Quiet Light Brokerage and the seller would work only with you.
What to Expect
A Letter of Intent (LOI) is an important step towards acquiring a business. To your benefit, an LOI opens up a period of time in which you and only you have access to the business in order to verify the financials and verify that the business was accurately and fully represented. In addition, the LOI acts as a general framework for a final purchase agreement by laying out the terms that the seller can expect to see should they agree to enter into a due diligence period.
Submitting a letter of intent is an important step to let the owner know what they can expect from you should everything verify during due diligence. Buyer’s should be certain that they are interested in acquiring the business for sale when they submit an LOI. Quiet Light Brokerage will not work with buyers who cancel an LOI or attempt to change the terms of an LOI for reasons other than misrepresentation or underrepresentation.