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Asset Purchase Letter Of Intent for Germany

Asset Purchase Letter Of Intent Template for Germany

A Letter of Intent (LOI) for asset purchase under German law serves as a preliminary document outlining the proposed terms and conditions for the acquisition of specific assets. This document, while generally non-binding except for specific provisions such as confidentiality and exclusivity, establishes the framework for negotiation and due diligence processes. It incorporates key considerations under German civil and commercial law, including requirements from the Bürgerliches Gesetzbuch (BGB) and Handelsgesetzbuch (HGB), while setting out the proposed structure, timeline, and key commercial terms of the transaction.

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What is a Asset Purchase Letter Of Intent?

An Asset Purchase Letter of Intent is a crucial preliminary document used in German business transactions when a potential buyer wishes to formally express their interest in purchasing specific assets from a seller. This document typically precedes the final asset purchase agreement and serves multiple purposes: it outlines the key commercial terms of the proposed transaction, establishes the framework for due diligence, and sets out any binding obligations (such as confidentiality and exclusivity) while maintaining the generally non-binding nature of the commercial terms. Under German law, particular attention must be paid to clearly distinguishing between binding and non-binding provisions, and ensuring compliance with both the Civil Code (BGB) and Commercial Code (HGB). The document is especially important in complex asset purchases where parties need to agree on basic terms before committing significant resources to due diligence and detailed negotiations.

What sections should be included in a Asset Purchase Letter Of Intent?

1. Date and Addressee Details: Formal letter heading with date and full details of both parties

2. Introduction: Brief statement identifying the parties and their intent to explore the potential transaction

3. Transaction Overview: High-level description of the proposed transaction and assets to be purchased

4. Key Commercial Terms: Outline of the proposed purchase price, payment terms, and any key conditions

5. Due Diligence: Process and timeline for conducting due diligence investigations

6. Timeline: Proposed schedule for negotiation, due diligence, and closing

7. Binding Provisions: Clear statement of which provisions are intended to be legally binding

What sections are optional to include in a Asset Purchase Letter Of Intent?

1. Exclusivity: Terms of any exclusive negotiation period, used when seller agrees not to negotiate with other parties

2. Confidentiality: If not covered by separate NDA, include confidentiality obligations

3. Break Fee: Include if parties agree to any break fee arrangements

4. Financing: Include if the buyer needs to specify financing arrangements or conditions

5. Employee Matters: Include if there are specific employment-related considerations to be addressed

6. Regulatory Approvals: Include if the transaction will require specific regulatory approvals

What schedules should be included in a Asset Purchase Letter Of Intent?

1. Asset List: Preliminary list of assets proposed to be included in the transaction

2. Indicative Timeline: Detailed timeline showing key milestones and deadlines

3. Price Calculation: If applicable, preliminary methodology for calculating the purchase price

4. Due Diligence Requirements: Initial list of due diligence requirements and information needs

5. Key Terms Sheet: Summary of main commercial terms agreed in principle

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Germany

Publisher

Ƶ

Document Type

Sales Agreement

Sector

Sales

Cost

Free to use
Relevant legal definitions
























Clauses
























Relevant Industries

Manufacturing

Real Estate

Technology

Industrial

Retail

Healthcare

Energy

Infrastructure

Transportation

Hospitality

Agriculture

Mining

Construction

Financial Services

Telecommunications

Relevant Teams

Legal

Finance

Mergers & Acquisitions

Corporate Development

Business Development

Operations

Risk Management

Compliance

Due Diligence

Strategy

Tax

Treasury

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Managing Director

Head of Mergers & Acquisitions

Legal Counsel

Corporate Development Manager

Business Development Director

Investment Manager

Finance Director

Operations Director

Asset Manager

Due Diligence Manager

Transaction Manager

Risk Manager

Compliance Officer

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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