Letter of Intent to Purchase a Business
This Letter of Intent to Purchase a Business is a written statement prepared and signed by the Seller and Buyer of the business that indicates their intention to enter into a legally binding contract to transfer the ownership of the company.
Although the letter is unenforceable and does not guarantee that the Parties will go through with a proposed deal, it helps to speed up the process of negotiations, builds up trust between the seller and the buyer, allowing them to confirm their intentions to sell and purchase the business, and informs the Parties about the mutual expectations and requirements.
This Letter of Intent can be used when the buyer is interested in purchasing either the entire issued share capital or the assets of the company.
Other documents commonly used in M&A, partnerships, investment, as well as purchase of a business are:
Index of the Letter