Document background
A Stock Purchase Letter of Intent is commonly used in the United States as a preliminary step in stock acquisition transactions. It serves as a roadmap for the proposed transaction, documenting the parties' initial understanding and commitment to negotiate in good faith. The document typically precedes more detailed due diligence and the execution of definitive agreements, while providing a framework for key terms such as valuation, structure, and timing. While non-binding except for specific provisions (like confidentiality and exclusivity), it's an essential tool for aligning parties' expectations and facilitating efficient negotiation of the final agreement.
