What is Expression of Interest that strategic financial buyer uses for buying tender

Date:

Trending

EOI or Expression of Interest is an application that a strategic financial buyer uses for buying a tender. The investment bankers are usually requested for EOI in their bidding process to segregate all potential buyers into a list of qualified buyers that may be a good fit for the sellers.

- Advertisement -

The Expression of Interest letter is delivered with not much detail because the buyer usually goes through the confidential information memorandum (CIM) before the management meetings are held.

The Expression of Interest is the first indication that a potential buyer is interested in further engaging in due diligence. It also provides the banker an idea about who is investing with what approximate value.

To gain more control over the process, the potential buyer must include the possible purchasing price, the estimated timing for closing the transaction, and the mode of payment so that the seller can decide if the buyer is eligible.

How to write the Expression of Interest?

When the tenders for the contract are promoted, the interested parties apply directly to the online portal that comes with a short description. The potential tenders are invited to register with an initial EOI- Expression of Interest.

Now, the purchaser expresses their interest in the bidding to get access to contract documentation through EOI.

Now, if they do not want to proceed further, then they are free to withdraw the application at any time without any obligation.

- Advertisement -

Generally, an EOI should always begin with an introductory praising word targeting the seller company.

Now let’s have a look at the contents of the Expression of Interest application:

Purchase Price: An EOI must mention the exact purchase price or the price range that the buyer is ready to pay in full cash with no debt and including all the other associated expenses. The buyer must also reserve the right to alter the terms of payment.

Valuation Methodology: This mentions the valuation of the tender and the critical assumptions taken by the buyer to accomplish the assessment. This offer is mostly made based on the seller’s future predictions.

Due Diligence: Next, the buyer seeks permission to get an opportunity to conduct the due diligence with the utmost satisfaction with both the business and the seller.

It may also highlight some of the significant areas that the buyer would look at while conducting business like diligence on finance, legal marketing, customer contracts, human resources, and a lot more.

Transaction structure: The buyer needs to explain the structure of the transaction in which they are interested. They must mention the mode of purchasing the price that is either with cash or a bank loan.

Management Retention plan: The buyer indicates the program to the senior management of the seller and explains the type of arrangement that they handle.

- Advertisement -

Transition and support services: The buyer mentions the need for transition and support services over a specific time to manage the business, and they will pay no extra charges.

Approval required for the transaction- to initiate the final deal, the buyer requires permission from its Board of Directors.

Conduct of business: The buyer expects that the seller will conduct the business frequently without creating any impact on the industry.

Confidentiality: The buyer proposes that privacy is maintained and the company name, the third party name is not disclosed without the consent of the buyer.

Finally, the application ends with a conclusion with a thanking note to the seller.

Non-binding Agreement: The buyer may also not choose to proceed with the transaction at the end as EOI is just a letter of interest, nothing mandatory.

Finally, the letter ends with a thanking note, and the buyers must never forget to mention their details for further communication.

Do you wish to have a look at all the tender notifications that are issued by the Local Self Government Department (LSGD)? Then have a look at their website where all tenders can be filtered based on their submission date, tender value, and project location.

But if you want to browse through the public and government tenders available all over India, then you can take help from BidAssist.

All you have to do is visit BidAssist and explore all the Indian government’s e-tender portal.

THE SNAPSHOTS, IN YOUR INBOX

Get quick snaps of everyday happening, directly in your inbox.

We don’t spam! Read our privacy policy for more info.

Support our independent journalism PayPal (Outside India) For PayU (For Indian Readers).

Krishna Mali
Krishna Mali
Founder & Group Editor of TechGraph.

More Latest Stories

More Articles

Discover the Features of Melbet’s Mobile App for Indian Bettors

The Melbet mobile application has been designed to cater to the growing community of mobile betting enthusiasts in India. As a comprehensive platform, it...

How AI is Transforming Traditional Business Roles

Artificial Intelligence has already had a significant impact on businesses and has made data-driven decision-making an essential strategy to adopt for business executives. The recent advent of Large Language Models (LLMs) and Generative AI has accelerated this trend and made it possible for AI...

The Impact of Real-Time Market Data Solutions on Informed Trading Decisions

The world of finance isn’t stagnant; it is dynamic and ever-evolving. Every second, a...

AI and Workplace Equality for Women in the Digital Era

As society heads toward an age dominated by technology, a key question remains: will...

Order for Health (O4H) Snaps INR 1 Cr In Series Seed Round Funding

Order for Health (O4H), a Bengaluru-based healthy food brand, has secured INR 1 crore...

build3 Launches Second Cohort of Impact Startup Academy

build3, an ecosystem championing startups that merge profit with purpose has today announced the...

RULOANS Sees Surge in Digital Secured Loan Demand on RUCONNECT App

RULOANS Distribution Services, an Indian financial products distributor, has reported a significant uptake in...

WeVOIS Lab’s Abhinav Vashistha On Shaping the Future of Waste Management with AI

During an interview with TechGraph, Abhinav Vashistha, Co-Founder of WeVOIS Lab, discusses how it...

OPPO, Microsoft Teams up To Bring Advanced AI Productivity To ColorOS 15

OPPO has strengthened its partnership with Microsoft to deliver advanced AI productivity features to ColorOS 15, OPPO's next-generation smart device experience. "To deliver advanced AI...

The Hidden World of Mega888 APK: What Casual Players Are Missing Out On

Mega888 APK is well-known among online casino enthusiasts for its thrilling games and easy-to-navigate...

The Importance of Zero-Trust Security Models in Safeguarding Data

In an age where cyberattacks grow more sophisticated by the day, traditional security models...

Vehant Technologies’ Shailendra Kumar Singh On Leveraging AI To Tackle India’s Traffic Challenges

During an interview with our editorial team, Shailendra Kumar Singh, Business Unit Head ,...

Crypto Market Crosses $3.08 Trn, Bitcoin Hits $91,616, Litecoin Drops Below $90

The cryptocurrency market surged to a total valuation of $3.08 trillion on Monday, with...

Voice-Based AI and SLMs: Gnani Ai CEO Ganesh Gopalan On India’s Voice AI Boom

During an interview with TechGraph, Ganesh Gopalan, Co-founder of Gnani.ai, discussed how voice-based AI, built on custom Small Language Models (SLMs), improves customer experiences...

MoneraCap com Review: A Deep Dive into a Transformative Trading Experience

Decision that can shape your investment journey. A well-chosen platform not only enhances trading success but also supports effective management of investments by providing essential tools, features, and security. With countless trading platforms competing for attention, each claiming unique advantages, it becomes essential to...

Gadgets: OPPO Find X8 Series to Launch Globally with MediaTek Dimensity 9400 SOC

OPPO, the world's leading smart device brand will bring the flagship MediaTek Dimensity 9400...

LTC UPDATE: Gate io Lists Litecoin Under Meme Coins

US-based cryptocurrency exchange platform Gate.io has listed Litecoin (LTC) under its meme coin category. The...
00:04:07

Protests Erupts in Valencia Over Deadly Floods in Eastern Spain

Over ten thousand people took to the streets of Valencia to protest against the...

UltraverseNFT Launches Sandalwood backed NFT for Eco-Conscious Investors

UltraverseNFT is proud to introduce its groundbreaking Sandalwood NFTs, designed to redefine eco-conscious investments...

Why BITBinvest.com is Expanding Worldwide & Capturing High-Profile Trader’s Attention?

BITBinvest.com has rapidly emerged as one of the leading companies in online trading, making...

4 Key Ways Robotics May Change Warehouse Operations by 2030

The landscape of warehouse operations is poised for significant transformation by 2030 with the...
00:00:25

Kriya: PM Netanyahu Closely Monitors ‘Military Operations’ On Iran

The Israeli Prime Minister's Office has released a new video showing Prime Minister Benjamin...
00:00:33

Iran Should Not Respond To Israeli Attack: UK PM Keir Starmer

The United Kingdom's Prime Minister Keir Starmer has requested Iran to avoid retaliation after...

Interactive Learning: Elevating Concept Clarity Through Online Education

In today’s digital age, virtual learning has taken center stage, with live online lessons...

Vehant Technologies’ Shailendra Kumar Singh On Leveraging AI To Tackle India’s Traffic Challenges

During an interview with our editorial team, Shailendra Kumar Singh, Business Unit Head ,...

Pokarna Engineered Stone Limited Commits Rs 440 Crores for New Bretonstone Line

Pokarna Engineered Stone Limited (PESL) said on Tuesday it will invest Rs. 440 crore...

Coinbase launches COIN50 Index To Track Top 50 Cryptos On its Exchange

Leading crypto trading platform Coinbase on Tuesday announced the launch of the Coinbase 50...
00:01:42

The Trump Effect: Crypto Market Hits $3 Trillion Market Cap; Bitcoin Surges $87K, While Ethereum Stood At $3k

Following Donald Trump's presidential election victory, the cryptocurrency market surged, reaching a whopping $3.02...
00:01:10

Tom Homan Old Video Goes Viral, After Donald Trump Taps Him As Border Czar

An old video of Tom Homan, former acting head of US Immigration and Customs...

Crypto Market Crosses $3.08 Trn, Bitcoin Hits $91,616, Litecoin Drops Below $90

The cryptocurrency market surged to a total valuation of $3.08 trillion on Monday, with...

Iran Should Not Respond To Israeli Attack: UK PM Keir Starmer

The United Kingdom's Prime Minister Keir Starmer has requested Iran to avoid retaliation after...

APP Reviews: Bengali Betting Sites

Recognizing the increasing demand for an exhilarating and convenient gambling experience in the Bengali...

Interactive Learning: Elevating Concept Clarity Through Online Education

In today’s digital age, virtual learning has taken center stage, with live online lessons...