Letter of Intent to Purchase a Business
With reference to our previous telephonic conversation, I am writing in the interest to purchase your business. This letter endorses our mutual intent for selling and purchase of business [x]. I am suggesting a few terms and conditions which will be included in AOP (Agreement of Purchase).
- This potential agreement is to be made between Ms. Jaqueline Mensah (Buyer) and Ms. Rosie Holmes (Seller) for the business [x], address [x].
- The business [x] will be sold for the amount of $ [X]. The transaction will be made online.
- The agreement of purchase will be signed after negotiations before or on 7th October 20xx.
- Before signing the deal, the buyer holds the right for a legal inspection of the business accounts and balance sheets.
- The buyer will be hiring a legal advisor and an audit officer to audit business bank account and to prepare a legal AOP.
- Any liabilities, securities or loans to be paid by the company will be paid before the date of signing the agreement of purchase. Moreover, the seller will provide the buyer with a legal clearance certificate to the buyer.
- Upon the written permission of the seller, the buyer can hire all the ex-employees of the business[x]. For this purpose, the human resource department will remain operational.
- This agreement is open for negotiations and discussions.
- This letter holds no legal binding and considers of no value until an agreement of purchase is signed.
Kindly read the above-mentioned clauses carefully and write to me in acknowledgment. I have also arranged a meeting to negotiate on the above-mentioned terms and conditions.
Kindly visit me at my office at the following address [x]. If you are interested give me a call on my number [x]. Looking forward to hearing from you soon.
I am writing regarding our previous meeting about purchasing of your business. I am delighted to inform you that I am interested in purchasing your business and with this intention, I am writing to you this letter of intent.
Moreover, I have prepared some terms and conditions for you to consider before jumping things to an agreement of purchase. Kindly go through them thoroughly, at least read them twice and let me know if you are still interested in selling your business. The terms are as follows:
- The agreement of purchase will be made between Mr. Hans Moiety (the buyer) and Mr. Stewards (the seller) Philip for the sale and purchase of business [x] on 7th Oct 20xx. The address of the head office of the business is [x]
- Before signing the agreement of purchase, the house is open for discussions, negotiations and settlements of books.
- The amount of purchase is $ [x] and not negotiable, whatsoever.
- The amount $ [x] will be paid in cash only, no online payments will be made. Also, the payment will be in two halves. The first half will be paid on the day of signing the agreement of purchase, the other half will be paid after 30 days of signing the agreement.
- The buyer will terminate all of the previous employees of the business. He will not be able to re-recruit them. Hence, he will be working with an entirely new team.
- This letter of intent is not binding the seller and the buyer into any legal commitment and it can be revoked and revised anytime by any of the parties. However, once the agreement of purchase is made and signed, no changes will be made.
Kindly acknowledge this letter and write me back at [x]. I look forward to your positive response.