Expression of Interest: Application used by strategic Financial Buyers for Buying Tender.

 Expression of Interest (EOI) is what investment bankers request for their bidding process. The purpose behind asking for EOI is to separate the potential buyers from the list of all qualifying buyers.

EOI doesn’t carry much detail. As the buyers have access to Confidential Information Memorandum (CIM) before the management meeting. EOI is usually taken as a signal that a potential buyer will divine in assessment. By EOI bankers will also get to know about the amount, and a potential buyer is ready to invest.

How to Write EOI?

On the promotion of Tender to contract, the potential tenders are requested to register with an EOI. The purchaser shows interest in the bidding by asking for access to the contract via EOI.

Whoever wishes not to participate future can withdraw their application. Generally, EOI should begin with a praising word that targets the seller’s company and background.

Contents of EOI application:

Purchase Price: An EOI should mention the price of purchase once the buyer is ready with cash (no debt) to seal the deal.

Valuation Methods: This talks about the predicted value of the tender and the time to accomplish it.

Due Diligence: The buyer seeks permission from the seller to conduct due Diligence.

Transaction structure: The buyer needs to talk about the mode of transaction they are interested in the seller. Whether it will be a cash or bank loan.

Management Retention Plan: The buyer explains the type of arrangement they handle to the senior management of the seller.

Transition and Support service: Buyers can ask for Transaction and support services without any extra charge for it, over a specific time.

Conduct of business: The buyer expects the seller that businesses should conduct frequently.

Confidentiality: This is a proposal of the buyer, that any information about the company name and third-party name will not be disclosed without their permission.

Non-Binding Agreement: The buyer can opt to not proceed with the transaction at the end, as EOI is not mandatory to follow future.

After stating all the above contents, the letter ends with a thanks note. Buyers should also provide communication information for the future.

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