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The price paid and the price adjustments will be determined by the audited or un_audited balance sheet figures of the business on a specified date and these shall focus themselves on the adjustments that arise after the closing date due to changes in the accounts receivable and inventories of the business from a specified date up until the closing date.

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.

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