Glossary · Deal process
Indicative offer
Also called non-binding offer, indicative bid, non-binding bid
Definition
An indicative offer is a buyer's first, non-binding bid: a price range and the main conditions, based on the information memorandum. The seller uses these offers to choose a shortlist, who then get data room access and run due diligence before making a binding offer.
Related terms
Binding offer A buyer's final offer after due diligence, usually with a marked-up purchase agreement attached. Confidential information memorandum The detailed sales document a seller's adviser sends to buyers after they sign an NDA. Letter of intent A mostly non-binding document that sets out the main terms of a deal before the final contract is negotiated. Bolt-on acquisition A smaller company bought to add to an existing platform business, common in private equity. Buy-side The buyer's side of a deal: the acquirer or investor, and the advisers who help them find, check and price a target. Carve-out The sale of a division or business unit that has to be separated from its parent company. Clean team A small, ring-fenced group allowed to see a competitor's sensitive data during a deal, under strict rules. Corporate development The in-house team that finds, runs and integrates a company's acquisitions and partnerships.