A letter of intent to purchase business is written by an individual or an organisation who is interested in purchasing another business. The letter states the terms and conditions for the proposed transaction including the price and the company’s liabilities and assets. A sample letter is given below.
Sample Letter of Intent to Purchase Business:
Henry Enterprise Limited
1st June 2014
Subject: Letter of intent to purchase business
Dear Mr Bennet,
This letter has been submitted by HM Revenue and Customs with the intent to purchase your business Henry Enterprise Limited, its inventory and all its assets. We propose the following principal terms for the transaction.
We would acquire Henry Enterprise Limited including its facilities located at 67 Boulevard Street, its brand, brand equity and customer lists. In addition to that, we would acquire all office and field equipments. As part of the deal, we would assume the current outstanding debt of £100,000.
In accordance with this, we would provide a compensation of £800,000 as follows:
- £100,000 on signing of the purchase agreement
- £200,000 after 30 day transfer period
- Remaining amount will be paid in equal monthly deposits during the first 12 months
We would require that you keep intent to purchase private till the purchase agreement has been completed and then we can issue a joint statement.
This letter isn’t an official purchase agreement. All the terms and conditions of the proposed transaction would be stated in the Purchase Agreement, to be negotiated and agreed by both parties.
In case of any queries or clarifications, feel free to call us on 7987970-988.
HM Revenue and Customs