For the buyer to pursue financing. The financing process takes times and banks require either an LOI or purchase agreement as part of the loan package. So an accepted LOI is a critical component to securing financing.
Accounting Practice Sale _ Why Use a Letter of Intent in an Accounting Practice Acquisition? I have presented several webcasts in the past month and in all of them there have been questions about the use and value of a Letter of Intent (LOI) _ in our process this is typically a non_binding agreement that signifies agreement in principle on the core deal points and agreement to negotiate in earnest on all remaining items.