Indication of Interest (IOI)
A non-binding written expression of a buyer's interest, usually including a value range and the broad shape of a deal.
In more detail
An IOI comes after a buyer has read the CIM but before deep diligence. It typically gives a value range rather than a single price, indicates the mix of cash and other consideration, and states what the buyer would need to see next. It is not binding, and its purpose is to let both sides decide whether to keep investing time.
If you are selling
Several IOIs at once is the point of a competitive process. It tells you the market's real range instead of one buyer's opinion.
If you are buying
It signals seriousness without committing you. Be realistic: a range you cannot later support damages your credibility.
Related terms
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Wondering what your business is actually worth?
An Estimate of Value is prepared by an analyst, not a calculator, and gives you a number you can plan around.
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