IOI
Business & Finance abbreviation · Finance
| Stands for | Indication of interest |
|---|---|
| Categories | Business & Finance |
IOI stands for Indication of interest, a finance abbreviation.
Preliminary, non-binding expression of interest from a potential buyer in an M&A auction, usually giving a valuation range and key assumptions. Sellers use IOIs to decide which bidders advance to the next round, and in equity offerings the term also describes investor interest in buying shares.
Example: First-round IOIs ranged from $300 million to $380 million, and five bidders were invited to management meetings.
Usage notes
An IOI is less detailed than an LOI, which comes later in the process. In securities trading, IOIs are also messages that broker-dealers send to signal interest in a trade, a practice regulators have scrutinized for potential misuse.
Related abbreviations
More finance abbreviations
- GP – General partner
- HNWI – High-net-worth individual
- HoldCo – Holding company
- IB – Investment banking
- IBD – Investment banking division
- ICR – Interest coverage ratio
- IRR – Internal rate of return
- LBO – Leveraged buyout
- LOI – Letter of intent
- LP – Limited partner
- LTM – Last twelve months
- M&A – Mergers and acquisitions