One Common LOI Mistake

Many clients come to me with a signed LOI in hand. Here is one common mistake I see time and time again:

The LOI contains asset purchase and equity purchase language.

Depending on how you read it, it could be construed either way!

Normally, this is no big problem. The parties see the deal the same way, and look past the inconsistency. But every once in a while, it causes an issue later on down the line. And by that point, the buyer has already incurred deal costs.