What is an LOI in a purchase and why is it important?

An LOI (Letter of Intent) expresses the buyer’s intent to purchase and outlines key terms—price, payment structure, timeline and contingencies—before drafting a binding agreementhttps://businessfundinggroup.com/blog/10-steps-to-selling-your-small-business/#:~:text=8,Letter%20of%20Intent. It usually includes exclusivity and confidentiality provisions and clarifies what’s included in the sale. Although non‑binding, an LOI provides a framework for due diligence and final negotiations and helps reduce misunderstandingshttps://kewlegal.com/how-to-buy-an-existing-business/#:~:text=6,Not%20a%20Shopper. Prime 100 advisors help craft the right deal structure and explore financing options, offering responsive, customer-focused service whenever questions arise.