Document background
A Letter Of Intent To Purchase Business is a crucial preliminary document used in Dutch business acquisitions to establish the initial understanding between a potential buyer and seller. It serves as a stepping stone toward a definitive purchase agreement, typically drafted when parties have reached a preliminary understanding but before conducting detailed due diligence. The document, while primarily non-binding under Dutch law, provides a clear framework for negotiations and usually includes binding provisions regarding confidentiality, exclusivity, and good faith negotiations. It's particularly important in the Netherlands where business practices emphasize clear documentation of intentions and agreements. The letter typically outlines the proposed transaction structure, preliminary valuation, timeline, and key conditions, while respecting Dutch legal requirements regarding pre-contractual obligations and good faith negotiations.
