What is Soft Offer?
The Short Answer
Soft Offer explained simply
A Soft Offer is like testing the waters. It’s a preliminary offer to buy a business. It’s not legally binding. It lets a buyer show interest without full commitment. It usually comes after a first look at the business financials. It helps both sides see if they are close on price and terms. It also helps the buyer get more detailed information.
Real-World Example
The Coffee Shop Soft Offer
A buyer is interested in a coffee shop. They review the basic financials. They send a Soft Offer for $200,000. This offer states it’s subject to a full review of books and records. The seller accepts the Soft Offer. This allows the buyer to start due diligence. If due diligence goes well, a formal, binding offer will follow.
Why this matters
Soft Offers save time. They help buyers and sellers quickly see if a deal is possible. It avoids deep dives into due diligence if the price expectations are too far apart. It sets the stage for a serious negotiation.
A Soft Offer is a good way to start a conversation. It shows you are serious, but it also protects you. You can walk away if the numbers don’t add up later.
A Soft Offer is a good way to start a conversation. It shows you are serious, but it also protects you. You can walk away if the numbers don’t add up later.
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