Letter of Intent (M&A Glossary)

Summary

A written statement or agreement of a party’s intent to enter into a particular transaction and the preliminary terms thereof prior to the entry into a more formal agreement. A Letter of intent does not constitute a binding obligation to enter into the contemplated transaction, but usually still contains valid contractual obligations such as exclusivity, due diligence cooperation, a best efforts clause to work towards the deal’s consummation and confidentiality requirements.