LOI vs APA

by a searcher from Southern Methodist University

9 months ago

I'm looking at a business in Florida and the broker has pushed for using an Asset Purchase Agreement rather than a Letter of Intent. Are there any key differences to be aware of? Is an APA more advantageous to a seller?

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searcher from Southern Methodist University

Thank you all for your responses! All super helpful. My general takeaway is to start with the LOI and negotiate the APA later on as it can be more detailed and you need DD to really work through accurately. Also, while APA might not be binding, it is more binding (I’m not a lawyer, so this is laymen’s terms) than an LOI.

9 months ago | like reply | 0 likes

searcher from Southern Methodist University

Thank you both!

9 months ago | like reply | 0 likes

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