Document background
The Investment Letter of Intent is a crucial preliminary document used in the United States investment landscape when parties are preparing to enter into significant investment transactions. It serves as a roadmap for the proposed investment, outlining key terms while maintaining flexibility for detailed negotiations. The document typically precedes more comprehensive agreements and is particularly important in situations involving substantial investments, complex transaction structures, or multiple stakeholders. While generally non-binding (except for specific provisions), it demonstrates serious intent and commitment to the transaction while providing a framework for due diligence and detailed term negotiations. The document must comply with U.S. federal securities laws and state-specific regulations, making it a vital tool in establishing clear expectations and protecting both investors and target companies during the preliminary stages of investment discussions.
