Document background
The Non-Binding Letter of Intent to Purchase Business is a crucial preliminary document in New Zealand business acquisitions, typically used after initial discussions but before detailed due diligence and final negotiations. It serves to formalize the prospective purchaser's interest and outline key terms while maintaining flexibility through its non-binding nature. This document is particularly valuable in complex business purchases where parties need to establish clear parameters for negotiations and due diligence while protecting confidential information. Under New Zealand jurisdiction, while the majority of the document is non-binding, certain provisions like confidentiality and exclusivity can be made binding if explicitly stated. The document helps structure negotiations, manage expectations, and provide a roadmap for the potential transaction while allowing both parties to withdraw if terms cannot be agreed upon or due diligence reveals concerns.
