Letter of Intent to Purchase Business Template
What Is a Letter of Intent to Purchase a Business?
A Letter of Intent to Purchase a Business is a formal document negotiated and drafted by the future seller and buyer of the business to demonstrate their wish to transfer the ownership of the organization from one party to the other.
- Business Purchase Letter of Intent;
- Letter of Intent to Purchase Business Assets.
Download a printable Letter of Intent to Purchase a Business template via the link below. A statement of this kind does not mean the parties will definitely sell and purchase the business but it allows them to discuss and determine the terms and conditions of the deal quicker and decide who will pay for the closing costs of the transaction.
How to Write a Letter of Intent for a Business Purchase?
Follow these steps to create a Business Purchase Letter of Intent:
- Identify the prospective seller and buyer by their names and contact details.
- Clearly state the purpose of the document - you are going to transfer the ownership of the business.
- State the name of the company that will be transferred. You must add as much information that identifies the business as possible. Do not forget to provide a legal description of the real property you plan to include in the transaction.
- Indicate the price of the business or its share that is up for sale with everything the current owner is willing to include and record the payment method the parties prefer. If you choose to secure the services of an escrow agent, state the sum of money to be put into a deposit account.
- Decide which party is going to pay for the due diligence and closing costs.
- Confirm the intention of the parties to sign the contract and determine the date or, alternatively, the deadline for signing.
- Sign and date the document. When you enter the final stage of the sale negotiations, you can refer to the Letter of Intent to Purchase Business Assets to see your initial thoughts on the essential conditions of your deal.
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