Letter Of Intent To Buy A Business Template for England and Wales

A Letter of Intent to Buy a Business is typically used in the early stages of business acquisition negotiations. It serves as a formal expression of interest while protecting both parties during initial discussions and due diligence. Under English and Welsh law, this document traditionally precedes the more detailed purchase agreement and helps establish the framework for negotiation. While mostly non-binding, it demonstrates serious intent and can include certain binding provisions. The document typically outlines proposed purchase price, transaction structure, exclusivity periods, and confidentiality requirements, helping to streamline the acquisition process and reduce misunderstandings between parties.

1. Sender and Recipient Details: Full legal names and addresses of both parties involved in the transaction

2. Expression of Interest: Clear statement of intent to purchase the business and overview of the proposed transaction

3. Business Identification: Precise details of the target business including legal entity type, registration details, and main business activities

4. Proposed Transaction Structure: Basic outline of how the purchase would be structured (asset or share purchase) and key terms

5. Indicative Price Range: Preliminary purchase price or range, subject to due diligence and final negotiations

6. Confidentiality Statement: Basic confidentiality obligations regarding the proposed transaction and information exchange

7. Non-Binding Nature: Clear statement that the letter is non-binding except for specific provisions such as confidentiality