14 Feb 2023
Will You Be Mine? Setting Transaction Boundaries with Letters of Intent
Before engaging in an acquisition or joint venture, it is both customary and best practice to identify the key terms of the business deal in a letter of intent (LOI) or term sheet. The LOI or term sheet outlines the important transaction terms and confirms the transaction parties have a mutual understanding about the acquisition before committing time, resources, and money to negotiate a deal. Without an LOI or term sheet, the transaction parties risk engaging in costly negotiations and breaking up before executing a definitive agreement. Refer to this practice note for a simple breakdown of the importance of LOIs in private M&A deals.
Related Content
- Market Standards Q4 2022 Transactions
View publicly filed transaction documents for transactions available in Market Standards that were filed between October 1, 2022, and December 31, 2022, and valued at more than $500 million and customize this search by adding any of 150+ deal points.
- Term Sheets
Read this practice note to learn about term sheets and the similarities with letters of intent.
- Letter of Intent (Joint Venture, 50/50)
Start with this template to draft a letter of intent for parties that will have equal ownership interests in a joint venture.
- Letter of Intent (Joint Venture, Majority/Minority)
Use this template to outline the terms of a joint venture relationship where co-venturers will have varying ownership interests.
- Letter of Intent to Purchase by Merger
Refer to this template and the related guidance when drafting or reviewing a letter of intent involving a merger transaction.
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