Letter of Intent to Purchase Stock

Summary

This template is a Letter of Intent to Purchase Stock, where parties to a potential stock purchase agreement memorialize the preliminary understanding they have reached on certain key transaction terms early in the negotiating process. This template includes practical guidance, drafting notes, and alternate clauses. A letter of intent may be based on a term sheet that is negotiated by the parties. A letter of intent is usually non-binding in whole or in part. Binding terms may include expense reimbursement, exclusivity, dispute resolution and entire agreement clauses. Non-binding terms usually include transaction specific terms that need to be fully documented in definitive agreements before they become binding. Note that this template may be customized to reflect the ultimate transaction. For a full listing of related stock acquisition content, see Stock Acquisition Resource Kit, and for a full listing of related private equity content, see Private Equity Transactions Resource Kit. For more information, see Letters of Intent in Private M&A Deals, Letters of Intent in Public M&A Deals, and Term Sheets. For additional templates, see Letter of Intent to Purchase Assets, Letter of Intent to Acquire a Public Company by Merger, and Term Sheet (Stock Purchase) (Private Equity Buyer). Click here to see recent examples of publicly filed stock purchase agreements in Market Standards - M&A, the Practical Guidance database of publicly filed M&A deals that enables users to search, compare, and analyze transactions using 150+ M&A deal points to filter search results. You can customize any search to your needs by adding filters or modifying the search criteria.