Document background
The Letter of Intent to Purchase Business is a crucial preliminary document in New Zealand business acquisitions, typically used after initial discussions but before detailed negotiations and due diligence commence. It serves to document the serious intent of a potential purchaser while maintaining flexibility before a binding agreement is reached. This document is particularly important in the New Zealand business environment, where it helps establish clear parameters for negotiations while adhering to local commercial practices and legal requirements. The LOI typically includes proposed purchase price, payment terms, exclusivity periods, and confidentiality provisions, while clearly stating which provisions are binding and which are not. It's an essential tool in business acquisitions, providing a structured approach to negotiations while protecting both parties' interests under New Zealand law.
