Letter of Intent (LoI)

What is a letter of intent?

The letter of intent is a binding/non-binding written declaration of intent between two or more contracting parties to conclude an envisaged contract on the terms agreed in the LoI. In the M&A business, the buyer announces in the LoI its intention to acquire the target company under certain conditions or at a certain purchase price. In addition to the declaration of intent, it is common for the letter of intent to contain provisions on confidentiality obligations, exclusivity and on the break-up fee or reimbursement of transaction costs.

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