This is a YouTube video titled "Startup Acquisition Stories with Joe Benjamin, Founder of RevPilots" containing a conversation between two speakers discussing the nuances of Letters of Intent (LOIs) in startup acquisitions, focusing on buyer seriousness and due diligence. The discussion took place around June 21, 2023.
Odd data point I've been meaning to pull up. Sometimes the person who puts out like the first loi typically is the buyer of the startup. Even if there's many different. Lois. By no means am I saying, you know, accept the first loi. You know, you want to see, see all through. You can often tell.
By the questions they ask how serious they are versus just kind of tire kickers.
Another thing I see too is, and this is maybe something to just avoid people who, who send out premature. Lois. So, like, they haven't asked the right questions yet. They really haven't dove into the business with you, you haven't spoken with them? I do. Signing those, Lois, because you want to do as much due diligence as you can up front. You know, you get to know the buyer, he asks questions. And so when you sign the loi, you have an understanding of what's going to come next, you have a plan, you have a strategy. Rather than just blindly signing an offer. You can tell with.
Good questions early on, like if they're asking smart questions, digging into things, you can tell how serious they are versus just kind of like some vanity stuff that they might just be generally curious about.
