Is it better to share a Letter of Intent in person or via email?

searcher profile

September 04, 2019

by a searcher from Indiana University at Bloomington in Carmel, IN, USA

I know it depends on the situation but I'm weighing whether to have a meeting with a potential seller in which I would share a hard copy LOI and then talk through it, or send it in advance via email and have a follow up discussion a day or two later. Curious what you think the best practice is for sharing and going back and forth during the LOI process.

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Reply by a searcher
from University of Vermont in New York, NY, USA
Having issued hundreds, yes hundreds, of LOIs, I can count fewer than a handful that were delivered in person. That doesn't mean there's anything wrong with delivering in person; it's just the way it's worked out. My preferred methodology is to walk them through it on a call and then send by email immediately thereafter. Another word about LOIs: KISS. Keep it as simple as possible, with as few contingencies and risk mitigators as possible. There might be brilliant ways of addressing various risks, concerns, issues, whatever through creative terms in an LOI. I have rarely found them to be effective and most often just overly complicate the situation. Also, shorter and sweeter trumps long and windy. Good luck and let me know if I can be helpful.
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Reply by an investor
from Illinois Institute of Technology in Pasadena, CA, USA
Always best in person; however, not always possible with buyers/sellers in different geographies. OK to send via email, but for sure, call and walk the counter party through the deal...the major terms and conditions so some high level questions can be answered. Don't negotiate, just explain what it is you will be sending via email right after you have had the 1:1 conversation.

Tom Korzenecki
Principal Managing Director
Grand Avenue Capital Partners, LLC
Investment Bankers###-###-#### Member FINRA SIPC
Pasadena, California USA
###-###-#### direct
skype: tom.korzenecki1
www.gacpllc.com
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