In our experience, an LOI is a critical component in structuring a win_win transaction. We use them on virtually every deal. Here are the main benefits we see: More efficient use of time Proceeding with a clear understanding and agreement in principle. Trigger point for taking the next steps. More efficient use of time: Some people feel an LOI puts the cart before the horse.
What is more, on top of everything else of decisively negative nature about this document, the LOI is a document adjudged by virtually every legal expert in the field as a document that is legally meaningless, worthless, unenforceable and non_binding both on the signatory parties or on anyone, but yet has the potential to bring forth immense and unanticipated legal complications and problems for the signer(s).