LOI vs Offer vs Term Sheet: How to Buy Business the Right Way
From David C Barnett Small Business and Deal Making M&A SMB by David C Barnett
April 13, 2026 · 22 min
About this episode
This episode explains the differences between an LOI, a term sheet, and an offer when buying a business.
**New Video Alert! What’s the difference between an LOI, a term sheet, and an offer when buying a business? If you’re trying to buy a small business, understanding how to structure your offer is critical. In this video, I break down the key differences between these documents, what should be included, and how to avoid costly mistakes that can kill deals before they even get started. Watch the video here: https://youtu.be/UAefk3FMTU8 Cheers See you over on YouTube David C Barnett #BusinessBuying #Entrepreneurship #SmallBusiness #BusinessDeals #businessacquisition #smallbusiness #entrepreneurship #loi #letterofintent #termSheet #dealmaking #businessdeals #duediligence #sellerfinancing **** - Join David's email list so you never miss any new videos or important information or insights, RECEIVE 7 FREE GIFTS!!- https://www.DavidCBarnettList.com **** Special Xero offer: Get 90% off for 6 months using this link: https://referrals.xero.com/DavidCBarnett_xero. Terms & Conditions apply.* Find more content that answers your questions with my new AI BOT: https://www.davidcbarnettbot.com/ Enjoy HUGE savings when signing up for Xero cloud-based accounting software using David's sponsorship…
People in this episode
Host: David C Barnett
Topics covered
- business acquisition
- LOI
- term sheet
- offer structure
- small business buying
- deal making
Keywords
- LOI
- term sheet
- business acquisition
- small business
- dealmaking
- entrepreneurship
- due diligence
- seller financing
Sponsors
Xero
Mentioned in this episode
Organizations: DavidCBarnettList.com, DavidCBarnett.com, DavidCBarnettBot.com
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