The negotiations preceding the sale of a business can be long. Indeed, the buyer, before entering into such an act would like, what is legitimate, be aware of the company in more detail. He wants to enter into knowingly and will request access to a number of documents (client file, patents ..) In forming the opinion the fairest of all. This phase implies that the seller discloses information about its business that may be sensitive or confidential. This explains why he does not wish to disclose it to anyone who will come without justifying a project defined and achievable.
It is in this context that the letter of intent in their interest. This is the first step of the transaction. It demonstrates in writing their willingness to lead to better discussions and bring the project to completion, leading to the eventual conclusion of a memorandum of understanding, without the oblige. This letter sets out a framework for negotiations by identifying and organizing its various stages. Part which the parties may refer throughout the period of the talks as it is often the only written expressing the will of the parties until the conclusion of the MoU. This letter will be the law of the parties until a new document is signed. If negotiations follow their courses satisfactorily, the letter of intent will lead naturally to the conclusion of a Memorandum of Understanding.
Note that the system of letter of intent depends mainly on its actual content, since the freedom of contract prevails in the matter. Thus the letter of intent is a concept of variable geometry that depends on the scope of which the parties willing to grant it. It can be more or less engaging for the eventual buyer and the binding character or not will depend strictly on the contents of the letter and not its title.
The main points to find in this document are: the general timetable of the negotiations, a confidentiality clause, an exclusivity clause, an obligation to negotiate in good faith and the principal terms of the transaction.
In the event that negotiations for a positive outcome, the final agreement will necessarily include a guarantee of liabilities and assets, and a commitment not to compete on your part. In addition, the binding elements of the final sale will be subject to the prior conduct of a legal audit, tax and social security from my consultancy work with you and your accountant.
I undertake to maintain, in strict confidence, any information that will be brought to my attention during the negotiations. The information referred
consensus of all accounting, financial and legal as well as the know-how related to the company’s business that are not publicly known to date. I force myself to not disclose information acquired as my colleagues and advice directly affected by the proposed transaction and I guarantee that they will be subject to the same duty of confidentiality.
This letter is based on the view that I made the company . .. From all written and verbal information provided to me by you so far. If the audits brought doubt on some of this information and concluded sensitive to a reduction in the value of the company, I reserve the possibility of reviewing this, or to discontinue negotiations at any time.
More articles – http://letterofinterest.net
Author: JeanmarieDelta961This author has published 1 articles so far. More info about the author is coming soon.