LOI Sample Letter for CA Homecare Deal

December 30, 2022
by a searcher in Orlando, FL, USA
I am about sending a LOI for a CA Homecare agency deal and I have some concerns on the letter. I got it from my CFO and it does not specially address the duediligent process, periods and no clauses are included to cover base. Since the seller did not send me any P&L and tax documents, I have to trust the business numbers from the owner who got it from his CPA Paperworks. The seller likes to see the offer first and would have their CPA to send me tax documents after the year tax return filed.
Anyone has a sample of LOI for buying California homecare agency non-medical caregiving business. I appreciate if you can share it with me. My email address is redacted
Thanks, and Happy Holidays!
Shannon Lee
from Harvard University in Fredericton, NB, Canada
Typically clauses are written into the Offer to Purchase.
Don’t overcomplicate it. The LOI isn’t the place to get bogged down. Set deadlines for the documents you need. Get the year to date financials. Small business owners can be really bad with their paperwork. It can take months to compile if they don’t have it organized before they started the sell process.
from University of British Columbia in Vancouver, BC, Canada
The letter of intent is supposed to be in subject to due diligence and funding. As long as it is mentioned in the LOI then it protects you. Also, as long as the offer you will be giving is in an EBIDTA/Profit multiple range, you are not fixing the price. The real amount would be decided post your diligence in that case.