Document background
The Intent to Purchase Business Agreement is a crucial preliminary document used in Indian business acquisitions to formalize negotiations between parties before entering into a definitive purchase agreement. This document is typically employed when a potential buyer has serious interest in acquiring a business but needs to conduct due diligence and negotiate final terms. It outlines key aspects such as the proposed transaction structure, indicative valuation, exclusivity period, and confidentiality obligations. Under Indian law, while the purchase intention itself is non-binding, certain provisions like confidentiality and exclusivity are typically structured as binding obligations. The agreement serves as a roadmap for the transaction, protecting both parties' interests during the negotiation phase and providing a framework for moving toward a definitive agreement.
