Indication of interest
Also called IOI
A non-binding written range of value from a buyer, submitted before management meetings.
In a sale
What it changes in a sale
Indications of interest arrive after buyers have read the CIM, and they show who is serious and at what range. Because they are non-binding, their value is in comparison: when several arrive on the same date, the founder can see the field before choosing who meets management. A range is not a price, and the buyers who stay in the process are tested again at the letter of intent.
Where it comes up
Read it in context
In the articles
- Same business, two outcomesTwo identical businesses, one prepared and one not, sell for very different prices.
- When a buyer calls firstAn inbound offer is information, not a decision.
- Strategic, platform, add-on, sponsor: who buys whatDifferent buyers pay for different things. The process should include several.
In The FNDRS Playbook
See the terms with your own numbers
The Go-To-Market Analysis (GTMA) builds the file a buyer would build on your business, before a buyer does.