Document background
A Letter of Intent to Sell Business is a crucial preliminary document used in business sale transactions in Denmark. It serves as a roadmap for the transaction and demonstrates serious intent from both parties while maintaining flexibility for detailed negotiations. The document typically precedes the definitive purchase agreement and is used when parties have reached preliminary agreement on key terms but need to conduct due diligence and negotiate detailed terms. While governed by Danish law, particularly the Danish Contracts Act, it usually contains both binding elements (such as confidentiality and exclusivity provisions) and non-binding elements (such as purchase price and general terms). This document is particularly important in the Danish business environment where structured and transparent transaction processes are valued, and it helps establish clear expectations and timelines for all parties involved.
