Whether or not you’re looking to sell your technology company, you could attract the attention of an interested buyer that presents an offer. When that happens, they’ll provide a Letter of Intent (LOI)—a document that outlines their intention to buy or invest in your business and the key terms and conditions they’re proposing.
When founders think about the sale process, they tend to view the due diligence phase as the most critical step. In reality, the LOI sets the stage for the entire deal negotiation. If you get the details of the LOI right, you stand a much greater chance of closing a deal that works in your favor. Yet, the LOI process is full of risks that can jeopardize a successful deal. If you don’t approach the LOI negotiations effectively, from the most informed position, you could end up with significantly worse deal terms— or no deal at all.
To help you navigate the complex LOI process and avoid the pitfalls that threaten a successful outcome, ScaleView has created The Founder’s Guide to LOIs (Letters of Intent).
This informative guide provides guidance and tips to help you respond effectively to an LOI and improve your odds of closing a successful deal. Our guide:
- Explains what an LOI is and why every transaction needs one
- Outlines the components and terms you’ll typically find in an LOI and why each is essential to the deal
- Describes how the receipt of an LOI can impact your business, requiring significant time and energy to respond and negotiate
- Reviews the most common mistakes to avoid during the LOI phase
- Explains the role of an investment banker in helping you secure an LOI that puts you in the strongest position for the best outcome
After you read The Founder’s Guide to LOIs, you’ll have more confidence in responding to an offer to buy or invest in your company and you’ll be better equipped to engage in a process that achieves the optimal outcome.
Download the guide to learn how the right approach to the LOI process can make all the difference in closing a successful deal.