A Letter of Intent (LOI) is a non-binding document proposed in letter format setting forth the understanding between two or more parties, which they intend to formalize in a legally binding contract. Letters of intent are commonly used between buyers and sellers of businesses, and between buyers and sellers of commercial real estate, including apartment buildings. Letters of Intent are commonly called Memorandums of Understanding (MOU).

Buyers of businesses generally pay more for the assets of a business than they would pay for the stock of the business. See: Advantages and Disadvantages of Asset Sales for Buyers, Advantages and Disadvantages of Stock Sales for Buyers, and Successor Liability.

Our firm is contacted regularly by people wanting to buy or sell a business. Given that our company was established in 1987, we are a well-known business intermediary with a growing list of prequalified business buyers who are ready to buy if the right opportunity is made available to them.