Trigger point for taking next steps: In addition to setting the key elements of the deal, the LOI is also a trigger point for critical milestones during process. Those trigger points are: For the seller to remove the practice from the market and focus on the single buyer. For the buyer and seller to begin conducting their due diligence. With agreement in principle on the main terms the seller will have more comfort in opening the books and sharing client information and the buyer will have more comfort in providing financial information.
Are You Properly Formalizing Your Business Intentions in a Proper Letter of Intent? Not having a properly drafted letter of intent may lead to loss of business as well as ambiguity in setting out the proposed terms of an intended sale. After all, when thinking of buying a business, the intentions to buy should be clearly set out at the very beginning.