An early proposal is not a final agreement
A letter of intent or indication of interest can outline proposed economics and process terms, but its binding and non-binding provisions depend on the written language and applicable law. Do not rely on a document title alone.
Look beyond headline enterprise value
Consider cash at close, assumed or excluded debt, working capital, rollover, contingent consideration, seller financing, escrows, indemnities, employment, and transition expectations.
Exclusivity and diligence have consequences
Confidentiality, no-shop periods, access to information, expense responsibility, deadlines, and termination rights can shape what happens after signing. Understand the obligations before granting exclusivity or sharing sensitive records.
Get independent legal and financial advice
A qualified attorney and transaction adviser can explain the proposal, compare alternatives, and help assess process risk. This overview is not legal or financial advice.