Merger and Acquisitions Series _ Non_Binding Letter of Intent. One of the first steps in the merger and acquisition ("M&A") process after executing a confidentiality agreement ("Confi") or non_disclosure agreement ("NDA") is the issuance of a non binding letter of intent. A letter of intent, referred to as the "LOI", is a legal document that is provided to show interest in progressing with a transaction, such as to purchase, joint venture or merger.
In deed, to this writer's knowledge, crude buyers, particularly the more established and prominent ones, would very rarely offer an LOI upfront to any sellers to initiate a purchase. And when, especially, the supposed "seller" that's involved is one that is a virtual unknown to the buyer, or one that is merely an Internet_generated seller about whose bona fides and credentials the buyer knows practically next to nothing, one can be almost absolutely certain that the chances of a crude buyer of substance signing over an LOI to such a seller, is practically next to zero.