PE buyers routinely chop the LOI price during diligence

The attorney warns that PE acquirers often issue a letter of intent for a headline price and then reduce it through diligence, with sellers sometimes ending near 60% of the original offer, plus post-closing holdback/escrow risk.

“they will start off and say, Hey, you know, we, here's our letter of intent, we will give you X number of million. Well, as they start going through that process, the goal is to chop that down, right? So by the end of the game, you might be at, you know, 60 % of what the original offer was.”

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