# What is a letter of intent? · Horizon Answers

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# What is a letter of intent?

Short answer

A letter of intent sets out the proposed price, structure and key terms before diligence. It is mostly non-binding, but once signed you usually stop talking to other buyers.

## What to know

-   Price is only one term; structure matters as much.
-   Exclusivity often lasts 60 to 90 days.
-   Terms rarely get better after signing.

## What to do next

1.  1Compare cash at close, not just headline price.
2.  2Check the working capital target.
3.  3Have an advisor review before you sign.

Last reviewed September 2026 by the Horizon team. General information, not legal, tax or financial advice.

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