Document background
A Letter of Intent to Purchase Business is a crucial preliminary document used in Danish business acquisitions to establish the framework for a potential transaction. It serves as a stepping stone between initial discussions and the final purchase agreement, outlining key commercial terms, conditions, and the process for completing the transaction. The document is particularly important in the Danish business environment, where it helps structure negotiations and due diligence processes while providing certain binding commitments such as confidentiality and exclusivity. While primarily non-binding in nature, it signals serious intent and commitment to the transaction, making it a standard practice in Danish M&A transactions. The document typically precedes more detailed due diligence and the drafting of definitive agreements, helping parties align their expectations and establish clear parameters for the proposed transaction.
