Heritage Capital Group CEO Bill Sorenson recently joined the podcast This Is M&A with Sharevault CEO Steven Monterroso to talk about one of the most important documents in the life of a deal: the letter of intent, or LOI.
In the conversation, Bill addresses several common questions business owners and their advisors may have when buyer interest emerges:
- Why are buyers so eager to get a seller under an LOI, and what risks come with moving too quickly?
- If most LOI provisions are nonbinding, why does the exclusivity clause carry so much weight?
- Beyond purchase price, which deal terms should be negotiated before signing an LOI?
- How much can valuation and deal structure vary when a business is exposed to multiple qualified buyers?
- What steps can sellers take during the post-LOI period to maintain leverage and keep the business performing?
An LOI is much more than a stepping stone to closing. It is the most critical document in the process. Too few owners recognize that creating the right LOI begins with the decision to sell. That is the moment to assemble your advisory team. If you or your clients are considering a sale, Heritage Capital Group can help ensure the process creates competition, preserve negotiating leverage, and position the business for the best possible outcome.
Listen to the latest episode of This is M&A featuring Bill Sorenson and Steven Monterroso.
