This letter of intent establishes the intent of one company to buy another, by way of a stock purchase. An alternative to this would be an asset purchase, and each carries certain legal and tax implications.
Dear [CEO.FirstName] [CEO.LastName],
This letter confirms your and our mutual intent with respect to the potential transactions described herein between [Sender.Company] (“Buyer”, “us”, “our”) and [CEO.Company] (“CEO”, “you”, or “your”), including its shareholders.
We appreciate the time and energy your team has put into discussing this opportunity with us and thank you for all the information that you have provided us thus far. This document, in and of itself, does not represent an enforceable legal contract.
As we continue to spend time evaluating [CEO.Company], we believe that transacting with [Sender.Company] can provide unique value and capabilities to help accelerate growth for both your company and ours.
Based upon our preliminary review of the information provided to us by [CEO.Company] we are pleased to present to you this non-binding letter of intent for a transaction between [Sender.Company] and [CEO.Company] in order to benefit both of our companies, monetarily or through growth.
We believe that in order for this transaction to be successful, all parties must have their interests aligned. With that in mind we have outlined a compensation structure in this letter of intent, as follows.
WHEREAS, Buyer is interested in acquiring all of the outstanding stock (“Shares”) of Company / CEO, and will be performing certain due diligence with respect to CEO’s corporation; and
WHEREAS, Buyer and CEO intend to negotiate the substantive terms of such acquisition, including the terms of Buyer’s employment agreements with certain key employees and executives of CEO;
NOW, THEREFORE, the parties enter into this Letter of Intent as follows: