LOI — Letter of Intent
Definition: A non-binding document outlining the key terms of a proposed deal — typically price, structure, and timeline — before the lawyers draft the real contract. LOIs signal serious intent without legally locking either party in.
Example
In M&A, signing an LOI usually triggers a 30-60 day exclusivity period where the buyer does due diligence before the binding purchase agreement.
When you'll hear it
LOI shows up most often in board meetings, quarterly business reviews, and strategy off-sites. When someone uses it, they're usually referring to letter of intent — and they expect the room to already know what that means.
FAQs
What does LOI stand for?
LOI stands for Letter of Intent.
What does LOI mean in business and finance?
A non-binding document outlining the key terms of a proposed deal — typically price, structure, and timeline — before the lawyers draft the real contract. LOIs signal serious intent without legally locking either party in.
Where will I hear LOI used at work?
LOI comes up most often in board meetings, quarterly business reviews, and strategy off-sites. It's used as shorthand for letter of intent, so people assume you already know the term.