Letter of Intent (LOI)
A formal, written document indicating the terms a buyer is offering a seller in a proposed acquisition or investment. Although not a contract, it is a document stating a serious intent to carry out the proposed acquisition. Certain terms such as NDAs (non-disclosure agreements) and non-competes may be legally binding. Once a letter of intent (LOI) is accepted it typically prohibits the seller from speaking with other buyers for a specified time (unlike an IOI).
