IOI & non-binding offer
An indication of interest presents preliminary price and transaction terms. It is generally indicative rather than a firm acquisition commitment, but its timing, format and any binding provisions depend on the document and sale process.
IOI & non-binding offer in round numbers
Hypothetical: a buyer uses an assumed 8x annual earnings before interest, taxes, depreciation and amortization (EBITDA) multiple as an indicative enterprise-value basis in an indication of interest (IOI), subject to diligence and further negotiation. The multiple is an assumption, not evidence from actual comparable transactions.
Scroll horizontally to read all columns.
| Stage | Possible next step |
|---|---|
| Teaser or initial information | Indicative IOI |
| IOI | Further diligence and possible LOI |
| Further diligence and agreements | Possible closing, subject to conditions |
Terms Related to IOI & non-binding offer
Letter of intent (LOI) · CIM · Due diligence · Multiple · All of the glossary