Indications of interest achieve a similar purpose in the mergers and acquisitions space to that of their securities and investments counterparts. However, they generally take the form of a formal letter for this purpose.
The buyer drafts the letter to make their intentions known, normally specifying a price range within which they are willing to make a deal and precisely what assets they are looking to acquire.
An indication of interest is an underwriting expression or document stating a party’s desire to purchase a company or a company’s securities. An IOI is conditional and non-binding.