Indicative Offer

Definition

A non-binding expression of interest submitted by a prospective buyer in an M&A process, typically stating the proposed purchase price (or price range), the form of consideration, key assumptions, conditions to completion, and an outline timetable. Indicative offers are submitted after review of the information memorandum and before the buyer is granted access to the full data room for confirmatory due diligence. The quality and competitiveness of indicative offers determine which bidders proceed to the next round.