LOI
A letter of intent that outlines proposed price and terms so both sides can start exclusive due diligence.
Last updated September 5, 2026
An LOI (letter of intent) is usually non-binding on the purchase itself, except for clauses such as exclusivity, confidentiality, and governing law. It records price, structure (asset vs stock), deposits, due-diligence period, and major conditions such as lease assignment or financing. Signing an LOI is not a closing; the purchase agreement and diligence findings can still change the deal or kill it. Buyers should not sign exclusivity until they are ready to spend time and money investigating.