Letter of Intent – The First Step to Buying a Texas Business
The letter of intent outlines the purchase of a business. The letter provides a summary of the terms and guides the deal after the letter is signed.
If you are considering purchasing a business in Texas, contact Tim Sutherland so the firm can guide you through the steps from start to finish. We can protect your interests and make sure the deal is done right. You need an attorney to review a proposed letter of interest from the seller or broker as these are often one sided and not favorable to the buyer. You probably don’t know what to look for and in fact each deal is unique due to the nature of the specific business and the seller and buyer. If you are the buyer and drafting the letter of interest, you should have an attorney write the letter as this can give you significant leverage in the deal to include favorable terms.
TERMS TO INCLUDE:
- financing and payment structure;
- structure of the purchase;
- seller involvement after the sale (training, employment, etc.);
- assets and liabilities;
- contract assignments such as real estate leases;
- time period for due diligence and closing;
- documents seller will provide to prove up representations including financials, books and records, profit and loss statements, taxes;
- seller representations;
- what will cause the deal to terminate;
- who is responsible for fees and drafting any future agreements;