What Happens After I Sign a Letter of Intent (LOI)?

What Happens After I Sign a Letter of Intent (LOI)?

Signing a Letter of Intent (LOI) is a major milestone in the process of selling your business. It signals that you and the buyer have agreed on key terms — such as price, structure, and timing — and are ready to move toward closing.

But the LOI isn’t the finish line. It’s the start of a critical next phase: confirmatory due diligence and final negotiations. At Merit Investment Bank, we guide you through every step of this stage to ensure a smooth, successful closing.

The Post-LOI Process

Here’s what typically happens after you sign an LOI:

1. Confirmatory Due Diligence
   This is when the buyer takes a deep dive into your company’s financials, operations, contracts, customers, and compliance. The goal is to confirm that everything aligns with the information provided earlier in the process.
• We help you organize and respond to buyer requests efficiently.
• We manage communication to maintain momentum and protect confidentiality.

1. Final Agreement Negotiation
   Once diligence is underway, attorneys for both sides begin drafting the definitive agreements — including the purchase agreement, transition plan, and any employment or consulting arrangements.

• Our team works closely with your legal and accounting advisors to ensure terms reflect your objectives.
• We negotiate on your behalf to protect your interests and minimize post-closing risk.

1. Closing Coordination
   After all documentation is finalized, we coordinate the closing process — aligning all parties to meet deadlines, secure financing (if applicable), and execute final signatures.

• Most transactions move from LOI to closing within 45 to 90 days, depending on complexity and buyer readiness.

Guiding You from LOI to Close

This stage can feel intense, but with experienced advisors managing the process, it becomes far more predictable and efficient. At Merit Investment Bank, we ensure you stay informed, supported, and in control — from LOI to final closing and beyond.

Book a free confidential call today!

The Best,

J. Craig Dickens 
Chairman
Craig.Dickens@MeritInvestmentBank.com
253-370-8893

Merit Investment Bank as a leading boutique investment bank is focused on entrepreneurial middle-market companies. Merit Investment Bank Executes sell-side M&A, buy-side M&A, and capital advisory services, debt and equity capital raises, corporate finance, and valuation services. Securities offered through Finalis Securities LLC Member FINRA/SIPC. Merit Investment Bank and Finalis Securities LLC are separate, unaffiliated entities.