Letter of Intent (LOI)

A description of the key points in a potential acquisition of a business. The purpose is to ensure that all parties are in agreement on salient points, and is not usually designed to be legally binding on any party. Examples of the key points that buyers and sellers would usually want to come to a general agreement on often include stock or asset purchase, purchase price, down payment, seller financing terms, liabilities assumed, covenant-not-to-compete terms, consulting/employment agreement terms and real estate lease terms.

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