For the folks in Acquisitions:
How many LOI's do you typically send out on prospective deals per month/week?
Do you prepare the document yourself (or is it typically outsourced to legal counsel in full or part)? When do you pass the deal over to legal?
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Completely depends on market conditions and the type of shop. A developer is going to send out WAY fewer LOIs than a high volume REPE fund or pension fund simply by nature of the type of deals they do, generally higher risk and capital commitments, and time frame, as well as fewer dollars to work with.
Working at a large multinational company that is primarily a developer but also raises income/value-add funds, it has ranged from 1 or 2 LOIs a week to 1 LOI every couple months in the time I have been here. Generally the person who sourced the deal or who is in charge of the broker relationship will draft the business terms in our standard form LOI then pass it to the exec team and Legal for review.
I'm at a national developer with an acquisitions platform that is relatively active. When times were good we would send out, on average, 1-2 per week, but the amount that went to PSA were significantly less. I would say that the last year or so has been like 1 a month simply because of the lack of deals that make sense from a pricing point on acquisitions.
We have in house legal counsel that drafts the documents and reviews them, the person who sourced the deals would be the one negotiating the terms of the LOI with legal counsel present. I wouldn't personally want an investment/finance background person drafting any legal documents.
Agreed on your last point, with the exception of the business terms. Although for most deals a standard form LOI template is enough to let the investment/finance guys draft business terms then send it to in-house to clean up.
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