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.