BizSugar.com › Strategy › Why Should a Letter of Intent Include an Expiration?

A Letter of Intent to buy a business or its assets may or may not include an expiration date and time. When the Letter of Intent (LOI) expiration date and time is defined, the buyer is putting the seller on notice that he or she must either agree to the terms defined in the letter or lose the opportunity to sell the business to the buyer authoring the LOI.

It’s important for the entrepreneur selling his business to understand that the terms defined in the Letter of Intent are negotiable and should be considered carefully and explored with his or her Merger & Acquisition Attorney and CPA. While a Letter of Intent is typically not binding on either party, it defines various deal points important to both the seller and buyer.