Letter Of Intent
topic on 4 shows · 9 statements across 9 episodes
the Y Combinator Startup Podcast 
Startup Acquisition Stories 
A Product Market Fit Show 
Capital Allocators
9 statements about Letter Of Intent, every show
Buyers asking excessive pre-LOI questions often just research to replicate startups
“If people ask too many questions, especially before the letter of intent, They're usually not particularly serious about it. There is this trend, not only on acquire.com, on Flippa and other websites, where people pay the monthly queue, whatever, and go on the…”
Gazdecki: Founders should accept lower acquisition offers to guarantee deal certainty
“I would recommend going with someone even at a discount because you know that the probability of that acquisition closing is higher instead of kind of signing and going into like a mystery tunnel with this person where once you sign there, cause the worst thin…”
Sanchez: Studia received an acquisition LOI within one month on Acquire.com
“So we read our profile. That was 10 minutes with the basic stuff. And we left it there. We left it there for a month. We were getting NDAs, people interested, some questions here or there, but it was actually one month until we got the letter of intent which w…”
Gazdecki: Pre-due diligence before an LOI dramatically boosts closing odds
“Pre due diligence where you have some calls up front, like you are asked and you respond to some hard questions and that gives you an indication of what it's going to be like working with the buyer before you sign, say a letter of intent.
And that's about work…”
Benjamin: Renewal Tracking Received an LOI Within Seven Days on Acquire.com
“And then I think like within seven days we had an LOI.”
Enterprise founders should skip LOIs and go straight to commercial contracting
“I mean, the crazy thing is I would not advise Spending a whole lot of effort trying to secure LOIs. First of all, it's a process in and of itself. It is a contract negotiation. And so even an LOI was executed by the chief payments officer. And those people are…”
Brodie: Non-binding LOIs weed out polite non-buyers and reveal real budget approvers
“What we discovered by doing that was like a lot of people are like, look, I really want the product, but I'm actually not in charge. So you're going to have to talk to my boss. And then we're like, Oh, that's interesting. Like we didn't know who had like budge…”
Non-binding LOIs effectively filter casual interest from serious customer demand
“Because it's not binding, it doesn't actually commit the customer to buying, but because it looks like a contract, customers take it really seriously. It's easy when you're talking to a customer for them to, like, be polite and casually say, like, sure, I'd bu…”