Lore

Competitive Tension via Multiple LOIs

Overview

A core value-add of an advisor-led sale process is running outreach to multiple buyers in parallel so several Letters of Interest (LOIs) land at the same time. With more than one LOI in hand, the advisor can play buyers against each other to push each toward their best price and terms, rather than negotiating one-on-one with a single interested party.

Mechanism

• Broad, parallel outreach (not sequential) generates multiple LOIs in the same window.
• Each LOI becomes leverage: buyers aware they're not the only bidder tend to sharpen price and terms rather than risk losing the deal.
• The advisor, not the seller, manages this leverage — a seller negotiating solo with one buyer at a time has no equivalent lever and is more prone to negotiation fatigue.

Quote

"that's one of the key ways to increase valuation and to optimize the exit terms and structure is to have as many LOIs as possible because then you'll be able to leverage those LOIs between them..."

Из тем: Selling the Brand