IOI

Business & Finance abbreviation · Finance

IOI
Stands forIndication of interest
CategoriesBusiness & 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.

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

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