Do I need a lawyer to draft my LOI for a very small deal?

by a searcher from Georgia State University

4 months ago

Do I need a lawyer to draft my LOI for a very small deal?

I am preparing to acquire a very small company (50K - 70K range) and would like to know if I should hire a lawyer to draft the LOI now, or wait until I am ready to draft the Asset Purchase Agreement. I would appreciate any feedback.

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searcher from Northwestern University - Kellogg School of Management

Do you ever *need* a lawyer? No. But I would always include lawyers more than I'd exclude them. That said, if the LOI was written initially by a lawyer you trust and you have sufficient ways to back out of the deal, then I suppose it's your choice whether you'd use a lawyer to see if this is a situation that fits what was drafted or not.

4 months ago | like reply | 0 likes

searcher from Binghamton University, State University of New York - School of Management

No, you don't need an attorney for a deal of that size. Google search for a good template, ask friends for one or use ChatGPT to craft one. Make the LOI non-binding and be sure to include an termination date. If you have engaged an attorney for the APA then ask her/him to review and comment on your LOI and bill you only if APA gets closed.

4 months ago | like reply | 0 likes

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