Fillable Form Business Purchase Letter of Intent

What is a Business Purchase Letter of Intent?

A Business Purchase Letter of Intent or also referred to as a Letter of Intent Purchase or Letter of Intent is a document outlining a written proposal for a purchase of a business entity. This is usually issued by the buyer to the seller and may be binding or non-binding.

How to fill out a Business Purchase Letter of Intent?

To fill out a Business Purchase Letter of Intent Form, you must provide the following information:

Sender’s Name

Enter your full legal name.

Address

Enter your correct address.

City, State, ZIP

Enter your city, state, and ZIP code along with your address.

Effective Date

Enter the date when you want the Business Purchase Letter of Intent to take effect.

Recipient’s Name

Enter the buyer’s full legal name.

Address

Enter the buyer’s correct address.

City, State, ZIP

Enter the buyer’s city, state, and ZIP code along with his or her address.

Purchase of a Business Entity

Item I. The Buyer

Enter the buyer’s full legal name.

Item II. The Seller

Enter your full legal name.

Item III. The Business

Enter the name of your business.

Item IV. Purchase Price

Enter the purchase price and ownership interest you agreed upon with the buyer.

Item V. Real Estate

Mark the appropriate box that applies to this Letter of Intent regarding real estate. You may select:

• Includes
• Does not include real estate

If this Letter of Intent includes real estate, provide the following information stated below:

A. Enter the correct location of the real estate

B. Enter any legal description of the real estate

C. Enter the correct purchase price of the real estate

Item VI. Payment

Mark the appropriate box that applies to the manner of payment for the Purchase Price. You may select:

• One Payment at Closing
• Owner Financing: In accordance with the following payment structure

If the Purchase Price will be paid through Owner Financing, provide the following information stated below:

A. Enter the down payment

B. Enter the interest rate

C. Enter the payment term in months

D. Enter the due date of the payment

Item VII. Financing

Mark the appropriate box that applies to the buyer regarding the Letter of Intent. You may select:

• Conditional
• Not conditional on their ability to obtain financing

If this Letter of Intent is conditional on financing, enter the terms you both agreed upon.

Item VIII. Binding Effect

Enter your initial and mark the appropriate box that applies to the legality of this Letter of Intent. You may select:

• Binding
• Non-binding

Item IX. Bank Accounts

Enter the correct amount of money you agreed to leave collectively across your financial accounts.

Item X. Formal Agreement

Mark the appropriate box that applies to your agreement with the Seller. You may select:

• Pending the satisfaction of all materials by the Seller within the agreed number of days a formal agreement shall be created between the parties
• There shall be no formal agreement

Item XI. Seller’s Conduct

The Seller agrees during the purchase to hold a fiduciary duty in the best interests of the Business. The Seller shall in no way conduct any action that would disrupt the ongoing status of the Business’s day-to-day operations.

Item XII. Closing

The closing is the act of closing the transaction where the Seller exchanges the Business for the Purchase price.

Item XIII. Closing Costs

Mark the appropriate box that applies to the party responsible for all costs associated with the Closing. You may select:

• Buyer
• Seller
• Both parties bear their own expenses

Item XIV. Termination

Enter the number of days for the termination of this Business Purchase Letter of Intent. If there has not been a formal agreement within the agreed number of days from the effective date, this Letter of Intent will be terminated.

Item XV. Access to Information

The Buyer will be able to access all information regarding his or her business with the Seller once this Letter of Intent is made.

Unless written consent is given by the Seller, the Buyer will not be allowed to share any information with third parties.

Item XVI. Return of Materials

If a Formal Agreement or Closing has not been made, every type of material the Buyer acquired from the Seller must be returned.

Item XVII. Conditions

The Buyer must complete a Formal Agreement with the Seller regarding material reviewing according to the terms in item XI.

Item XVIII. Confidentiality

The Buyer and Seller will not be allowed to share any type of information regarding this business. If necessary, they will be allowed to share this information with their advisors, staff, and other individuals who are needed to run this business only.

Item XIX. Good Faith Negotiations

Both the Buyer and Seller must act honestly and diligently during the completion of a Formal Agreement and Closing.

Item XX. Exclusive Opportunity

Entering into discussions with parties outside of this business will not be allowed once this Business Purchase Letter of Intent has been executed.

Item XXI. Standstill Agreement

The Seller will not be allowed to sell a portion of the business until a Closing with the Seller has been completed.

Item XXII. Currency

The U.S. Dollar will be the only currency used in the Business Purchase Letter of Intent.

Item XXIII. Governing Law

Enter the state wherein this Business Purchase Letter of Intent will be governed.

Item XXIV. Severability

It will be agreed upon by both the Buyer and Seller that any invalid or illegal provision in this Business Purchase Letter of Intent will not in any way affect the remaining provisions.

Item XXV. Counterparts and Electronic Means

The Buyer and Seller will be allowed to create copies of this Business Purchase Letter of Intent regardless of its execution.

Seller

Seller’s Signature

Affix your signature.

Date

Enter the current date.

Print Name

Enter your full legal name.

Buyer

Buyer’s Signature

The buyer must affix his or her signature.

Date

Enter the current date.

Print Name

Enter the buyer’s full legal name.