Writing an IOI


The Indication of Interest (IOI) is the document given to a seller by the interested buyer to indicate his or her genuine interest in purchasing the business. The IOI is the first formal document that is exchanged during an M&A deal. In the IOI, the buyer lists key components of the transaction such as approximate price range and the timeframe.

Be sure to write this document in the format of a letter, with an introduction and a sendoff. Use enthusiastic language to communicate your serious interest in the deal.

In order to write an IOI, a few key points must be included.

1. The approximate price range - No need to pinpoint one specific rate just yet but be sure to include how you will pay.

2. Your credibility - Make the seller feel that they are in safe hands and that you have the funds to back up your claims.

3. Timelines - for both the entire deal and the due diligence process.

4. Post-closing plan - Selling a company can be scary if the seller does not feel like they are leaving their company in the right hands.

5. Remember to write a sendoff that includes a call to action, encouraging the seller to make a move.

For more advice on writing an IOI, contact an M&A intermediary at George & Company today.