LOI (Letter of Intent)

A non-binding document outlining the key proposed terms of a deal — price, structure, exclusivity, and timeline — signed before full diligence and definitive agreements.

An LOI typically marks the start of exclusive diligence: the buyer commits time and cost to underwrite the deal in exchange for the seller taking it off the market for a defined period. Most pipeline-stage tracking treats LOI as the transition point from sourcing/screening into active underwriting.