Definition

Exclusivity

Period during which the seller agrees not to negotiate with other bidders — the operational reason the LOI matters.

Typical exclusivity windows run 30–60 days from LOI signature, sometimes extending in 2-week tranches. Exclusivity converts a soft preferred bid into committed diligence and SPA negotiation. The seller's leverage drops the moment exclusivity is granted; disciplined sell-side advisors keep the auction warm until exclusivity is genuinely earned.