Crossing the Line: LOIs

The Letter of Intent (LOI) —is one of the most important lines to cross in any M&A. It signals that seriousness by all parties; that both sides are willing to invest real time and resources to see if a deal can get done.

This phase isn’t about ‘locking it in’. It’s about going deeper, beyond evaluating the business—it is about defining a shared path forward. That takes clarity, trust, and careful negotiation.

I’ve now gotten close enough to term sheets a few times to see where things align—and where they don’t. Sometimes we shake hands. Sometimes we walk away. And in both cases, I’ve learned fast.

A good LOI does a few things well. It creates mutual understanding around price, structure, and deal timeline. It creates a window for diligence where both sides can commit without distractions. And it sets the tone for how the next 30–60 days will go—collaborative, transparent, and focused. In short, it signals a willingness and confidence to close a transaction.

I won’t get into deal-specifics here, but I’ll say this: The cleanest LOIs are simple, respectful, and fair. They don’t need to win every point. They just need to reflect alignment and make room for discovery.

Once that’s in place, the real work begins—and the real relationship starts.

Want to Connect?

If you're curious about the LOI process—or want to share how you’ve approached it—I’d love to connect.

📧 Email: holdings@sidebright.com
📅 Schedule a call or coffee: zcal.me/1WCN1
🔗 Website: sidebright.com/holdings
💼 LinkedIn: linkedin.com/in/ericpizzi
📞 Or just give me a call.

Related Resources

▶️ Watch: Anatomy of an LOI – Stanford Search Fund Panel (YouTube)
🎙️ Listen: The LOI Process – Acquiring Minds with Mark Arcenal
📄 Read: What Belongs in an LOI (and What Doesn’t) – Searchfunder Article