Print pagePDF pageEmail page

Dr. John Psarouthakis, Founder and former CEO, JPIndusries,Inc., a Fortune 500 industrial corporation. Publisher of www.BusinessThinker.com

This article covers the letter of intent, which should be negotiated and signed prior to the start of formal due diligence and the formal due diligence process itself.

The most extensive and expensive investigation of a company lead takes place during the formal due diligence.  Formal due diligence can be viewed as the fourth filter through which company leads pass.  Because of its expense, you should probably plan to complete formal due diligence on a company you are fairly certain to buy.  Sometimes the process of negotiating the letter of intent itself weeds out some candidates that looked good after preliminary due diligence. Or you may uncover information during the formal due diligence that you were not aware of during the preliminary due diligence phase.  It is likely that during the 18 month to two year period that you scrutinize company leads, if about two dozen leads get subjected to a thorough preliminary due diligence, only four or five will actually follow through to formal due diligence. Some will drop out during the preliminary due diligence phase itself. Other company leads might drop out because buyer and seller are unable to agree on terms in the letter of intent.

For the complete article go to e-reports at:


Reference: “How to Acquire the Right Business”

John Psarouthakis & Lorraine Uhlaner

Published by Xlibris, 2009


  1. And it may be said that most Americans don’t need a socialistic society for your United States. When you set-up a personal
    spending budget you’re simply installing an plan to cover your cash with objective as opposed to shelling out it haphazardly.
    They may either keep on beneath the present program, or they are able to attempt to easily simplify issues and choose to cover
    a flat 15 % taxes outright.

  2. excellent points altogether, you just gained a brand new reader.
    What would you recommend about your publish that you made a few days ago?
    Any sure?

  3. Blogging is not my day job definately. Im trying to promote my
    business by wanting to write about it. But crap is it ever
    difficult. I do admire your articles, and I put to comment to just
    offer you kuddos on wonderful information and content.

  4. Blogging is not my day job definately. Im trying to
    market my
    business by attempting to reveal it. But crap could it be ever
    difficult. I really do admire your articles, and I simply had to comment to
    give you kuddos on wonderful content and information.

  5. Pingback: Jordan Chinni
  6. Hi, I’m busy doing my own due diligence at the moment and came across this page, every business opportunity is unique due to parties involved, whats on offer, the nature of the business/product/service and target markets… Which makes it difficult sometimes to structure the right letter of intent without sounding like you are trying to circumvent other parties during the initial startup of a prospective business.

    Do you have any “ABC”s for a letter of intent?
    Message structure/ information to include / exclude / format and formality?

    would be great to get feedback. –

Leave a Reply to Due Diligence Cancel reply

Your email address will not be published. Required fields are marked *