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.
Proceeding with a clear understanding and agreement in principle: The key elements of the LOI should be negotiated beforehand and can be used as a guideline to prepare the purchase agreement. It should state that, if all information during due diligence confirms what was represented, that the buyer intends to complete the purchase under certain conditions. The key elements should include: