LOI TERMS SUMMARY (for discussion with counsel; not a legal document)
Target: small business under evaluation.
Offer: $1,500,000, structured as an asset purchase.
Seller financing: 10% of price ($150,000), on full standby for the life of the SBA loan.
Exclusivity: 60 days from signing.
Diligence period: 45 days.
Transition: seller support for 3 months after close.
Non-compete: 5 years.
Offer contingent on:
- Financing: SBA 7(a) approval on terms acceptable to buyer
- Quality of earnings supporting the reported SDE
Questions for counsel: anything above that should move, and what this market's LOIs currently hold on each point.