A letter of intent is a standard part of negotiating certain transactions. On bigger transactions, the process of negotiation can be timely and expensive, requiring due diligence and research. A letter of intent is intended to establish that the parties to the transaction are in agreement about the material terms of the transaction, such as price, before engaging in a process where no fundamental agreement exists. The letter of intent can also lay out some of the procedures that will be part of the process. Letters of intent, or their counterparts, are used for smaller transactions, such as commercial leases, as well as $20 billion mergers.

If you are interested in drafting a letter of intent, please contact us.