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: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
- The overview and structure of the future transaction to be made
- The timeline following the letter, containing information on the service
- Due diligence information
How to Edit the Letter of Intent TemplateWhile 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.