Indication of Interest (IOI)

An indication of interest (IOI) is a preliminary expression of interest in a security or other financial instrument. It is not a binding offer to buy or sell, but it does indicate that the person or entity making the IOI is interested in doing so at a certain price.

IOIs are often used in the context of mergers and acquisitions, when one company is considering buying another. The acquiring company will typically send an IOI to the target company, stating its interest in buying the company and the price it is willing to pay. The target company can then decide whether to accept the IOI or to negotiate a higher price.

IOIs can also be used in the context of private equity transactions, when a private equity firm is considering buying a company. The private equity firm will typically send an IOI to the company's owners, stating its interest in buying the company and the price it is willing to pay. The company's owners can then decide whether to accept the IOI or to negotiate a higher price.

IOIs are not legally binding, but they can be a valuable tool for companies that are considering making a major transaction. They can help to gauge the interest of potential buyers or sellers, and they can also help to set the price for a transaction.

Here are some additional details about IOIs:

* IOIs are typically sent in writing, but they can also be made verbally.
* IOIs typically include information about the person or entity making the IOI, the security or other financial instrument in which they are interested, and the price they are willing to pay.
* IOIs are not typically made public, but they can sometimes be leaked to the media.
* IOIs can be withdrawn at any time before the transaction is completed.

IOIs are a common part of the financial world, and they can play an important role in major transactions. By understanding what IOIs are and how they work, you can be better prepared to participate in these transactions.