We’ve written about Letters of Intent here on the blog before in an effort to make sure our readers are well educated about the hows and whys of business sales, but truth be told, 90% of our deals here at Apex start with our proprietary Offer to Purchase (OTP).
What is it?
This is a proven, easy to complete, easy to understand document that standardizes and simplifies the buying process by taking 17 years of experience in buying and selling businesses and distilling it into a form that can be adapted to nearly any type of business (as we have language compiled from all the deals we’ve ever been part of).
The major elements of an offer are covered and we can very easily amend the offer with additional details as needed. Having a form like this ready to go ensures that both parties know there is actually a deal on the table before spending more time and expense on it.
A big advantage is cost savings. Instead of having to contract with a lawyer to draw up an LOI, and the revisions that follow, you can sit down with one of our advisors and put together all the necessary provisions in a much shorter time frame. There’s no charge for this service.
Our OTP also has sections that take into consideration financing, as well as a good-faith deposit against the sale of the business, usually at least $5000.
Finally, whether you’re a buyer or a seller, you know that speed will be a component of the transactions we engage in, as we are working with a streamlined s better as we do more deals.
Three things to keep in mind…
First, the real work really begins after the OTP is signed. That’s when all the due diligence and paperwork flies back and forth (literally and digitally).
Secondly, having our OTP doesn’t eliminate the need for lawyers, it just reduces the amount of time they’re needed for this part of the process.
Finally, we almost always see LOIs on larger and more complicated transactions: our OTP doesn’t cover every situation and business, but it does cover the vast majority of them, and in those exceptional cases we can just as easily work with an LOI as our own OTP.
Want to experience our signature OTP service? Give us a call at 913-383-2671 or send us an email today!