Letter of Intent Acquisition of Business

Provide an accurate definition of all inclusions and exclusions of a sale or acquisition of a business by making use of our Letter of Intent Acquisition of Business template. Get a clear picture of what the seller is offering such as specific assets and exclusions of the sale. Indicate purchase price and other conditions such as employment arrangements for employees of the business being acquisitioned. Get a standard letter of intent that allows you full customization of the document to fit to your specific need. Make haste and download the file today to start using this document in acquiring any business.

Letter of Intent Acquisition of Business

[DATE]

[NAME OF CLIENT]
[COMPLETE ADDRESS]
[COMPLETE ADDRESS 2]
[CITY, STATE/PROVINCE]
[POSTAL CODE/ZIP]

SUBJECT: LETTER OF INTENT TO ACQUIRE A BUSINESS

Dear [Name of Client]:

This letter known as “Letter of Intent” imposes the basal original terms between the Purchaser or his representative and yourself, in relation to the buying of the [SPECIFY ACQUISITION] business, also known as the “Business” as represented by you. Excluding as particularly set forth herein, this Letter of Intent will not comprise the agreement between both parties and no agreement will be reckoned as present up till implementation of a defined purchase agreement.

It is suggested that Purchaser will get specific assets of the Company which Purchaser considers to be important for the future of the Company, to include the storage in [CITY/STATE] in which [BUSINESS NAME] the Business has committed [AMOUNT] in cash and which has been supported by a mortgaged loan of about [AMOUNT] offered by the [SPECIFY BUSINESS] [CITY/STATE]. Purchaser comprehends that the said storage has no additional fees or liabilities concerning it other than the same mortgage loan. Purchaser may either buy the storage outright or engage into a rent-to-own payments transfer of ownership which is best for both parties. The gross buying price for the said storage will be [AMOUNT]. Purchaser may buy or rent barrels and other devices presently possessed by the Business, which are important to handle the Business, on a cash or instalment basis depending on agreement of both parties. The specified assets to be bought and the amounts to be expended by Purchaser in relation to this business remain to be agreed by the parties.

This Letter of Intent also proves the commitment of both parties in relation to the following arrangements::

1. Purchaser will input into a [NUMBER]-year employment agreement with [COMPANY NAME], furnishing for the Business will be obligated for the buying of [SPECIFY ITEM] for Purchaser. The agreement will comprise of the conventional terms and conditions found in employment arrangements in the same transactions and will furnish the typical non-solicitation and non-competitive covenants to be engaged by the Company in favour of Purchaser.

It is definitely comprehended that if the suggested transaction is completed, the multiple amount of commission paid or payable to yourselves (net of valid expenses offered to the Purchaser) in relation to all expenses of [SPECIFY EXPENSES] done through you from the date of this Letter of Intent to the date of closure, with the exclusions of the commissions earned on the [NUMBER] truckloads of [SPECIFY] to be received by the Purchaser during the week of [DATE] to [DATE], will be utilized against remuneration payable to the Business in the first year of his job agreement. If the suggested transaction is not completed, all the earnings paid or payable will be considered as commissions.

2. Purchaser will input a [NUMBER]-year job arrangement with [EMPLOYEE NAME], furnishing the payment of a gross base salary of [ANNUAL SALARY] per year, to be spent weekly, in relation to yearly review. [EMPLOYEE NAME] will be Chief Executive of the Company and the job arrangement will furnish automobile, expenses, health benefits and bonus arrangements. The agreement will comprise the conventional terms and conditions found in job arrangements in the same transactions and will furnish the typical non-solicitation and non-competitive covenants to be included by [EMPLOYEE NAME] in request of the Purchaser.

3. Purchaser will join into a [NUMBER]-year job arrangement with [EMPLOYEE NAME], furnishing the payments of a [WEEKLY SALARY] gross weekly salary. The agreement will comprise the conventional terms and conditions included in the job agreements in the same transactions and will furnish the usual non-competition and non-solicitation covenants to be joined by [EMPLOYEE NAME] in favour of Purchaser.

4. Both parties will join the arrangement which furnishes Purchaser with the choice to buy all of the covered outstanding shares of the Business to an combined buying price of [AMOUNT]. The agreement will comprise the conventional terms and conditions found in a choice to buy shares agreements in the same transaction.

The transaction is initially imposed on the subsequent conditions:

• Both parties having joined by a binding agreement will comprise such representations and guarantees as mandated by the Purchaser, acting reasonably;
• As there is no material adverse change in the company or monetary condition or operations of the Business and the Company from the date of this Letter of Intent to the date of closure;
• A duly diligent review of the business and assets of the Business and the Company as Purchaser deems important, to include verifying all encumbrances upon assets and equipment, and immense satisfaction of Purchaser with the results thereof;
• You furnishing Purchaser with a thorough checklist of equipment and assets of the Company;
• You furnishing Purchaser with a existing cost breakdowns in relation to the buying , handling and delivery of [NUMBER] to [NUMBER] [SPECIFY] in [STATE], such analysis, satisfactory to Purchaser, including the expenses of operating the storage (including taxes, heat, utilities and maintenance charges);
• Investment [COUNTRY] approval to the transaction.

When the Letter of Intent is executed, the paragraphs succeeding to this one will comprise lawfully binding and enforceable arrangements of Purchaser and yourself. These agreements shall be started for a term of [NUMBER] days from the date set out below and shall continue thereafter until ended by either of the parties succeeding [NUMBER] days prior to written notification.

During this term hereof, nobody will directly or indirectly canvass, start, or to engage in negotiations or discussions with any individual or business besides the Purchaser regarding any selling or the same transactions involving the Business or the Company operations.

During this term hereof, everyone on the undersigned consent to use the main efforts to transact definitive arrangements bearing the intention of this Letter of Intent and to complete the transactions mentioned above.

Before both parties engage in this contemplated defined arrangements, all parties to this Letter of Intent will utilize all efforts to maintain the confidentiality and trust of these transactions and negotiations.

Respectfully, 

PURCHASER COMPANY

Authorized Representative and Signature    Authorized Representative and Signature

Full Name and Designation

 Full Name and Designation
[BUSINESS NAME]              

[BUSINESS NAME]