Document background
A Letter of Intent to Purchase Business is commonly used in the initial stages of business acquisition negotiations in Ireland. It serves as a crucial stepping stone between informal discussions and a final purchase agreement. This document is typically employed when a potential buyer has conducted preliminary assessment of a target business and wishes to formally express their interest and proposed terms. While generally non-binding, it helps establish the framework for further negotiations and due diligence processes. The document operates within Irish legal framework, particularly under the Companies Act 2014 and related business legislation, and typically includes key elements such as proposed purchase price, exclusivity periods, confidentiality obligations, and conditions precedent. It's an essential tool for protecting both parties' interests during the negotiation phase and providing a clear roadmap for the transaction process.
