The preliminary contract - LoI - 11 Company acquisition - Step 3.3
In the course of an investment process (due to the immense variety of possible strategies and options, we will only describe the further procedure in general terms at this point), it is now necessary to check which offer you want to examine in depth and which offer should be bindingly secured by a preliminary contract (letter of intent / LoI). Depending on the number of offers and the dynamics on the seller’s side, this step can quickly take weeks or months. The LoI (Letter of Intent) is not strictly legally binding but commits both sides to a common clarity in the intended transaction. At this point, both sides are committed to negotiating the subsequent framework conditions of a purchase agreement.