What an LOI is for
An LOI can summarize price, structure, assets or equity being acquired, expected timing, diligence conditions and other major business terms. Its role is to reduce ambiguity before detailed documents are negotiated.
Binding and non-binding terms
Some LOI provisions may be intended as non-binding while others—such as confidentiality, exclusivity, expenses or governing law—may be binding. Never assume the label “LOI” determines legal effect.
Use Flippa itself to verify current listings, pricing and platform details.
Price and consideration
State not only the headline price but also cash at close, seller financing, earnouts, holdbacks, inventory treatment and any working-capital assumptions.
Diligence and conditions
Describe what diligence remains, which approvals are required and whether financing or third-party consents are conditions to closing.
Exclusivity
Sellers should understand how long they are restricted from negotiating with other buyers and what milestones the buyer must meet during that period.
Move to definitive documents carefully
Platform LOI builders can make workflow easier, but the legal consequences of a specific transaction require professional review appropriate to the parties and jurisdiction.