Both an IOI (Indication of Interest) and LOI (Letter of Intent) are bid documents in an M&A process, so what’s the difference between an IOI vs. LOI?
IOIs are non-binding documents that typically come earlier in the M&A process, while an LOI comes later in the process, may contain some legally-binding clauses, and more clearly outlines the proposed deal terms while expressing both parties’ interest in consuming a transaction.
Indications of Interest (IOI) Overview
IOIs are generally used in a deal process to signal serious intent to proceed with a transaction. They are customary following early diligence, when it becomes time to identify and proceed with serious potential buyers.