“I Ain’t Fallin’ for No Banana in My Tailpipe” — The LOI Trap That Costs Founders Millions

It’s one of the oldest tricks in the book: A buyer flashes a big number, drops it into a Letter of Intent (LOI), and says, “Let’s move fast.” You’re told this is just a formality. A sign of good faith. A necessary step to get the deal across the finish line.

But here’s what they don’t say:  Once you sign that LOI, you give up your leverage.


At Founders Capital Network, we call this the “banana in the tailpipe moment” - an homage to the misdirection play of Detective Axel Foley in Beverly Hills Cop. It looks like progress, but it can be a setup.


When you sign an LOI, you agree to exclusivity. That means you’re off the market—no talking to other buyers, no new offers, no competitive pressure. Just you and the buyer, locked into a process that now tilts heavily in their favor. And that’s when things start to shift.


They slow down the process. The deal timeline starts to stretch. They send waves of diligence requests, and “issues” begin to surface—things that were never a problem before. Then, just as you’re worn out and deep in the process, the buyer comes back with a lower offer.


They say it’s because of what they found. But let’s be honest—it is often the plan with preemptive buyers.

We’ve seen this too many times.


That’s why we built Founders Capital Network—to protect business owners from that playbook.

Before you ever sign an LOI, we clarify your numbers, structure your terms, shape the buyer narrative, and run a competitive process. That pressure keeps buyers accountable, timelines tight, and valuations strong.

And the results speak for themselves.


In a recent study of closed transactions over the last 20 years, as reported by Forbes magazine, founders who worked with firms like ours achieved an average 25% higher sale price, and an average of 1.5 times higher EBITDA multiple compared to those who went it alone. Not because we overhype deals—but because we help sellers keep control when it matters most.


And here’s the other part no one tells you: when deals drag, operations suffer. Founders shift focus away from the business. Sales dip. Key people leave. And then the buyer uses that as an excuse to lower the price again.

We don’t let that happen.


We keep founders focused on performance so the business continues to thrive—even while the deal is in motion.

Here’s the bottom line:

Signing an LOI too early is one of the costliest mistakes a founder can make.

It may feel like progress, but it can be the moment the deal starts to slip away.

So don’t fall for the banana in the tailpipe.


Talk to us first.

The NFL Draft, Your Business and Why the Offer Is Just the Beginning

By Joseph Ashby • June 27, 2025
Every April, the NFL Draft reminds us of what it looks like to reach the top of your game. After years of discipline, long nights and showing up when it was hard, top college athletes get their shot at the pros. But when their name is called, it doesn't mean they've "made it." It means they're stepping into a new chapter that comes with high stakes, complex decisions and the pressure to get it right. That's why every top player has an agent. Someone who's been there before. Someone who understands how much is on the line. At Founders Capital Network, we think business owners deserve the same professional representation. You built it. Let us help you protect it. Selling your business isn't just about numbers. It's about everything you've poured into your company — your time, your identity, your family's future. We've seen too many owners think the offer is the win. But just like the NFL Draft, the offer is just the start . The real outcome is shaped by what happens next—due diligence, negotiations, deal structure. And the truth is, you shouldn't have to navigate that alone. This isn't your average transaction. For athletes, getting drafted means contracts, clauses and performance bonuses. For business owners, selling a company means: Understanding what your business is truly worth Ensuring the letter of intent, which makes you exclusive with a single buyer, has the appropriate amount of detail Making sense of a 70-page purchase agreement Answering many questions during due diligence Negotiating terms that may be new to you Figuring out what your role is (or isn't) after the sale That's where we come in. We sit on your side of the table—translating legal language, pushing for better terms, ensuring the numbers work in your favor and keeping the process moving. We do the behind-the-scenes work so you can stay focused on what matters most—your life, your legacy and your next chapter. You don't need to know how to sell a business. You need someone who does. Founders Capital Network was built for small business owners like you. Most owners have not built their company with an "exit" in mind — but now they realize it's time for a new season. We're not brokers trying to list your business on a website. We're not investment bankers chasing high fees. We're advisors who help: Owners with less than $1M in EBITDA Founders ready to sell but unsure how to start Wealth advisors, CPAs and attorneys who guide their clients through the unknown If you care about getting it right , we're the partner that helps make that happen. You get one shot at this. Let's do it right. The NFL Draft lasts three days. Selling your business takes months. Sometimes longer. There are ups and downs. Offers that look great but don't hold up. Surprises. Delays. Decisions that don't just affect you but your family, your employees and your future. Having the right team around you makes all the difference. At FCN, we treat every client like it's their only deal—because it usually is. Ready when you are Whether you're just starting to explore your options or you've got an offer in hand, let's talk. There's no pressure, no pitch—just a conversation about what a smart exit looks like and how to get there without regrets. Because at the end of the day, your deal really is our mission. Schedule an Assessment