In part 1 of this 2 part series, we sit down with Jordan Rose, Managing Partner of Ravine Capital to discuss the process that many investors and business buyers observe leading up to a formal offer.
If you own a company and are contemplating a sale of your business, an IOI or Indication of Interest is a meaningful stage in the process. Jordan shares what information investors look for leading up to an IOI and what they hope to achieve with this formal, but non-binding, letter. Generally, it's high-level alignment on purchase price, structure, and your respective values.
In part 2 we dive into the process leading up to a LOI or Letter of Intent in a company purchase. The LOI is similar to the IOI in that it maintains some of the same structure and elements of the IOI while adding more granularity and specificity to the offer. We also discuss how the LOI is largely non-binding with exception to the period of exclusivity where a buyer and seller are agreeing to negotiate with one-another exclusively for a period of time.https://youtu.be/I7hXfn5OCDs?t=261
-- topics covered and key assumptions we're makinghttps://youtu.be/I7hXfn5OCDs?t=566
-- what is an IOI?https://youtu.be/I7hXfn5OCDs?t=812
-- forms an IOI can takehttps://youtu.be/I7hXfn5OCDs?t=871
-- how do we get to an IOI? inputshttps://youtu.be/I7hXfn5OCDs?t=1231
-- timing and buyer process with the IOIhttps://youtu.be/I7hXfn5OCDs?t=1503
-- post IOI diligence stage objectiveshttps://youtu.be/I7hXfn5OCDs?t=1871
-- prioritized items for post IOI diligencehttps://youtu.be/I7hXfn5OCDs?t=2304
-- timing for post IOI diligence