Document background
The Letter of Intent to Buy a Business is a crucial preliminary document used in Danish business acquisitions to establish the framework for negotiations and due diligence. It is typically employed after initial discussions between parties have yielded general agreement on basic terms but before detailed due diligence and final contract negotiations begin. The document outlines key commercial terms, exclusivity periods, confidentiality obligations, and the proposed transaction structure, while adhering to Danish legal requirements and business practices. While most provisions are non-binding, certain elements like confidentiality and exclusivity are typically made legally binding. This document is essential in Danish business transactions as it provides a clear roadmap for the acquisition process and helps prevent misunderstandings between parties during negotiations.
