Document background
An Investment Letter of Intent is a crucial preliminary document used in the early stages of investment negotiations in Denmark. It serves as a roadmap for the proposed transaction, outlining the parties' intentions, key commercial terms, and the framework for moving forward. While generally non-binding, it demonstrates serious intent and commitment to the negotiation process. The document typically precedes more detailed agreements such as Share Purchase Agreements or Investment Agreements. Under Danish law, particular attention must be paid to specific binding elements (such as confidentiality and exclusivity provisions) while maintaining the overall non-binding nature of the document. The Letter of Intent helps structure negotiations, set expectations, and provide a foundation for due diligence and detailed transaction documentation.
