Letter of Intent to Purchase a Business – A letter of intent to purchase a business is used by the buyer and seller to decide whether there is a sufficient agreement between them to continue with the sale of the business.
When a letter of intent to purchase a business is drafted, it describes the basic terms of the proposed transaction and is usually nonbinding. The letter of intent precedes a formal business purchase and sale agreement.
The goal for a letter of intent is to make sure the buyer and seller agree on the major points of the purchase and sale of the business. If there is a disagreement about the transaction, then the buyer will not have wasted time and money preparing a detailed purchase agreement.
The letter of intent should be drafted by an experienced business attorney to ensure that the language is nonbinding, since the letter typically does not contain enough information to complete the transaction in a manner satisfactory to both parties.
Our letter of intent to buy a business covers these topics:
- Purchase price
- Assets covered and delivery date
- Closing date
- Due diligence period
- Investigation of the business
- Consulting arrangement with owner or key employees
- Confidential information
- Releasing of public information
- Conditions to closing
Take your California letter of intent seriously; a poorly drafted letter may have unintended consequences that could be costly.
Our letter of intent for the purchase of an entire business or assets has been drafted by a licensed, practicing attorney experienced with business transactions. This versatile, professional letter of intent will save valuable time when negotiating the purchase of a business.
We offer you two types of a business letter of intent:
1) A letter of intent to buy the entire business including all the assets
2) A letter of intent to buy only certain assets of a business