Document background
In the context of business acquisitions in Malaysia, a Non-Binding Letter of Intent to Purchase Business is typically used as the first formal step in a business acquisition process. This document serves as a framework for negotiations and due diligence, outlining the prospective buyer's serious interest while maintaining flexibility before making binding commitments. It is particularly important in the Malaysian business environment, where relationship-building and formal expressions of intent are valued in business transactions. The document typically precedes more detailed agreements and helps parties align their expectations while protecting their interests through specific provisions regarding confidentiality and exclusivity. While governed by Malaysian law, it deliberately maintains its non-binding nature to allow parties to negotiate freely and conduct thorough due diligence before proceeding with a binding agreement.
