M&A Glossary: Indication of Interest (IOI)

An IOI is a non-binding letter used to express interest in acquiring a business. The IOI will typically include a value range, due diligence plans, a high-level proposal for deal structure, and expectations for seller transition. An IOI and an LOI are not the same thing. An IOI is like asking someone on a date, while an LOI is closer to an engagement ring.

For advice on exit planning or selling a business, contact Al Statz, CEO of Exit Strategies Group, Inc., at alstatz@exitstrategiesgroup.com. Exit Strategies Group is a partner in the Cornerstone International Alliance.