Pre-LOI · B2B Services

LOI Negotiation Counsel for B2B Services Acquisitions

Negotiating LOI Negotiation on B2B services deals, with the structure protection and capital connectivity an independent sponsor actually needs.

EV range $8M to $90M EV EBITDA $2M to $18M Audience Buy-side / Sponsor
The deal context

The economics on a B2B services platform deal usually hinge on a handful of structural decisions. LOI Negotiation is one of them.

The typical B2B services platform sits at $8M to $90M EV with EBITDA in the $2M to $18M range. The thesis runs on recurring revenue service platform with bolt-on operators. Most B2B services deals look better in the CIM than in the data room. Skip the CIM, ask for the contracts.

The moves

How LOI Negotiation actually gets structured.

  1. Cap the exclusivity at 60 days, with one 30-day extension you control.

  2. Name the earnout, the rollover percentage, and the management fee in the LOI itself, not later.

  3. Reserve QofE and rep-and-warranty insurance as buyer expenses, paid at close.

  4. Build a no-shop carve-out for inbound strategic bids above a threshold.

  5. In B2B services, layer in MSA assignability mapped customer-by-customer as part of the LOI Negotiation workstream.

The common mistake

Letting the seller's counsel draft the first LOI. The frame of reference sets every fight that follows.

Jason's take
"An LOI is not a non-binding nicety. It is the deal, in skeleton."
Jason Powell · LOI Negotiation
Capital after close

The deal is one thing. The capital that opens up after close is another.

Refinancing, recaps, growth rounds, and the right strategic conversation eighteen months early are all downstream of relationships that take years to build and minutes to use.

MONTH 18
Senior refi
MONTH 24
Dividend recap
MONTH 36
Growth equity
YEAR 4–5
Strategic exit
WORK WITH JASON

Bring the B2B services deal. Get LOI Negotiation done right.

Direct counsel from a securities and M&A attorney with billions in structured transactions, the independent-sponsor-native playbook, and the capital markets network that opens up post-close.