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    2 Replies Latest reply on Oct 12, 2010 9:02 PM by Bridge

    Sending in an Offer to Purchase

    Mr.Clump Newbie

      Hi All,

      First...Im new but the site and forum it's great .

      I am starting the process of buying a small ice cream business (no real estate).
      I was sent a Letter of Intent from the business broker which needs to be sent in with in an offer.
      Can someone direct me on what really needs to be included in the "Offer". I need to send this in asap as I have been getting things in order and some time has now pasted by and I need to tie it up before someone else puts it under contract.

      The broker stated that we once the LOI was sent I could then neg with the seller on the price etc. so I'm unclear why an "offer" really needs to be included. Should everything be in the offer or basically just the price / terms?

      Any help would be great
        • Re: Sending in an Offer to Purchase
          KathleenF Scout
          Welcome to the community, Mr.Clump!

          I'm not sure on your question but I'm sure someone will come around to with some suggestions.

          • Re: Sending in an Offer to Purchase
            Bridge Navigator
            Run, don't walk away from this one.

            A Letter-of-intent should outline your intent to buy the business including the "big rocks"; i.e. price and terms.

            The LOI typically covers the structure of the transaction (asset or stock); basic non-compete parameters and any other major deal components. It will have a financing contingency (if needed) and a no-shop clause.

            If you are unfamiliar with any of these terms, get professional help on your side of the table.

            Before submitting an LOI, you should have reviewed the financials and operations of the business and talked with the owner. Ideally, most of this would of been covered in the Information Memorandum sent to you by the broker - he sent you one right?


            Best of luck,

            Greg Dupuis
            Bridge Ventures, LLC