Payments M&A glossary
LOI (Letter of Intent)
A non-binding (mostly) document that outlines the proposed terms of an M&A transaction. Triggers exclusivity and detailed diligence.
Also known as
Letter of Intent ยท Term Sheet
Full definition
A Letter of Intent (LOI) is the document that moves an M&A transaction from interest to commitment. It includes proposed purchase price, deal structure (cash, stock, earnout, rollover), key conditions, due diligence period, exclusivity, and target close date. Most LOI terms are non-binding, but exclusivity, confidentiality, and expense reimbursement clauses typically are binding. Signing an LOI starts the diligence and definitive-agreement drafting phase.
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