Non binding letter of intent, Sample & Format

Non binding letter of intent

Introduction

A letter of intent is usually used by the buyers and sellers to confirm their agreement on the material terms and conditions related to the transaction including price, financing. closing date and other important pointers. The letter of intent can provide an assurnace to both the parties that the agreement is in place and they can proceed ahead to draft the contract. Anything that is remianing to be drafted excluding the letter of intent is addressed during the contract drafting stage.

Though an LOI is almost universally intended to be non-binding, it frequently contains binding provisions governing confidentiality and marketing or negotiating exclusivity. A non-binding letter of intent is a letter written to indicate the intention of a party to negotiate in good faith for acquiring another business with some terms of acquisition for the recipient’s consideration. It is a sample contract for both potential buyer and seller to look over the terms and conditions to further possible negotiations. Hence, no obligations are imposed on either party. The sample letter mentioned below will help you out.

Sample Letter

From:

Robert B. Garcia

Acquisition Director

Universal Financial Consulting

4755 Settlers Lane
New York, NY 10036

DD/MM/YYYY

To:

Larry Blower
Ocean Springs Seafood Supplies

3429 O Conner Street
Ocean Springs, MS 39564

Dear Sir

RE: Non-binding letter of intent

I am writing this piece of correspondence documentation on behalf of my client, who prefers to be anonymous until the final stage of this procedure, to present this non-binding letter of intent for the financial acquisition of your business, Ocean Springs Seafood Supplies.

We would like to invite you and your company to consider our proposition of the financial acquisition of your business firm with the following negotiable terms and conditions, as my client is keen to make this acquisition successful at the earliest. Our calling offer for your business is a ballpark figure acquisition of $2 million, after a careful inspection and review of your book value.

In our understanding, we believe it is a fair offer, and we hope to hear from you for confirmation or any further discussions.

Thank you for your attention on this matter.

Yours Sincerely,

Robert B. Garcia

Acquisition Director
Universal Financial Consulting

 

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