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The LOI presents a specific bid for your company, along with the steps to finalize the deal. While its not a purchase agreement, it’s a significant commitment, where you as a business owner agree to give the buyer an exclusive time window (usually around 90 days) to conduct their duediligence and to close the deal.
Launching your exit: Share marketing materials with potential buyers and initiate conversations with interested parties. Executing a Letter of Intent (LOI) and closing the deal: Execute an LOI with a single buyer, engage in the duediligence process, and finalize the deal.
There are several types of exitstrategies for small businesses, each requiring careful planning. In this post, we focus on developing an exitstrategy to sell your business through the mergers and acquisitions (M&A) process. They need to confirm your commitment to exiting.
As you progress in your exitstrategy, make sure your licences are up to date and transferable when appropriate so the new owner can continue operating the business after you step away. Proven ability to progress potential buyers from initial interest to submitted bids.
Out of those 12 potential buyers, the highest bid came from a private equity firm (a financial buyer) , not a strategic buyer. They chose a strategic buyer that knew the ins and outs of the business and did a significant amount of duediligence before submitting their LOI. But the SunPro/Peakstone team didnt take that offer.
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