LOI strength and term sheets

searcher profile

August 23, 2024

by a searcher from The University of Arizona - Eller College of Management in Gilbert, AZ, USA

Hello,
I'm about to submit an LOI, and three different banks have supplied term sheets (I know it was a ton of extra work). So, how have any of you shared term sheets to support the strength of your offer? There is a lot of stuff in those that could hurt my offer as much as help, so I wanted to know your thoughts. Redact it? Or just be straightforward and transparent?

0
11
148
Replies
11
commentor profile
Reply by a professional
from University of Virginia in Holmes, NY 12531, USA
Thanks, ^redacted‌. Howdy, ^redacted‌. I'd be happy to chat with you if you want to drop a DM. Very broadly speaking, I'd want to know more of the specifics about the bank documents that you think might be harmful to your offer - nonetheless, on initial approach, it's *probably* not necessary to overshare, as Kostas points out. Don't redact. *Probably* as also noted above, you share a brief snapshot of relevant info and then see how things develop from there. Please don't hesitate if I can be helpful. Best, Matt
commentor profile
Reply by an intermediary
from The University of Chicago in Chicago, IL, USA
TMK, banks do not give a "Term Sheet" until after LOI is signed, and they do not give "Commitment" letter until after DD.
I think what you have is bank's letter saying your financial capability to pull off a deal. You are better off having that than not having one. But also remember, they are "dime a dozen".
Use of wrong terminology is risky.
You do not need to over-disclose.
commentor profile
+9 more replies.
Join the discussion