Overview

This is a Letter of Intent template, provided by CFI, to help you create a professional and effective letter of intent for your business.

A letter of intent is used to state and outline certain conditions and comes before a binding or definitive agreement, which could be a share purchase agreement or an asset purchase agreement. These conditions might be used for a potential merger or acquisition (M&A) or for an investment into a business. Additionally, it could be used for a business or independent contractor who may be about to provide a service to another company. This template letter is ready to use (after updating it) and includes a number of the key features that letters of intent are accustomed to having:
    • The overview and structure of the future transaction to be made
    • The timeline following the letter, containing information on the service
    • Due diligence information
    • Confidentiality
    • Exclusivity
Although non-binding on the whole, there are binding elements, such as non-disclosure, exclusivity, and governing law. The letter should contain as much information about the project as needed, for example, payments, service quality, and duties. To access more useful tools and templates, please visit CFI's channel page. If you have any questions relating to the Letter of Intent template, do not hesitate to start a discussion below.  

How to Edit the Letter of Intent Template

While this LOI template is a great starting point, it will require some editing and customization to fit your own specific use-case. Start by downloading the Word document, read through the example, write down bullet point notes about all of the information for your transaction, and then re-write the Letter of Intent template. Additionally, always be sure to consult a professional advisor before making any offers or entering into any legal agreements. To learn more about M&A transactions (and LOIs) check out CFI's M&A Financial Modeling Course.  

This business tool includes 1 Word Template

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Ray Zhang

A simple starting point for a Letter of Intent

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