E-commerce · Lifecycle

Buyer before signing an LOI

Published · Reviewed by The Diligence Standard Team · Updated

An LOI should preserve access, timing and economic flexibility around unresolved material assumptions.

Records to reconcile

  • Initial earnings support
  • Key dependencies
  • Proposed structure and timetable

Warning signal

The price and exclusivity period become fixed before essential evidence is available.

Transaction impact

The buyer may lose leverage or accept unrealistic diligence timing.

Response

List unresolved assumptions and protect the right to investigate them.