Before You Sign That Letter of Intent, Be Sure to Read the Fine Print

The old adage, “the devil is in the details,” holds true especially when you are in the beginning stages of a deal.

You have a Letter of Intent (LOI) in hand.

Exciting? Absolutely. Final? Not at all.

This is where the true negotiation begins — ready or not.

Many sellers have:

• Locked themselves into buyer-friendly terms,

• Given away leverage during “non-binding” discussions,

• Signed exclusivity too soon and lost options.

The LOI sets the tone — and can become a trap for the unwary.

It’s the first step in setting the structure and pace of the entire transaction.

Here are some tips:

• Before you sign, pause 

• Smart sellers use the LOI as a strategic tool, not just a formality. 

• Remember: How you start the deal often determines how you finish it.