3 Powerful Letter of Intent Templates You Need

Below are three unique templates to help you draft an effective Letter of Intent for various business scenarios.


Template 1: Partnership Agreement

[Your Company Letterhead]





[Date]

[Recipient’s Name]
[Recipient’s Title]
[Recipient’s Company]
[Recipient’s Address]
[City, State, ZIP Code]

Dear [Recipient’s Name],

Subject: Letter of Intent for Partnership Agreement

We are pleased to present this Letter of Intent (LOI) to outline the potential partnership between [Your Company Name] and [Recipient’s Company Name]. This LOI is intended to summarize the discussions to date and set forth the principal terms and conditions under which we are prepared to enter into a formal partnership agreement.

1. Objectives and Scope:
The partnership aims to [state the primary objectives and scope of the partnership]. This will involve [briefly describe the key activities and areas of cooperation].

2. Responsibilities and Contributions:
Both parties will contribute resources and expertise as follows:

  • [Your Company Name]: [Detail your company’s responsibilities and contributions]
  • [Recipient’s Company Name]: [Detail the recipient’s responsibilities and contributions]

3. Term and Termination:
The partnership will commence on [start date] and will continue for a period of [duration], unless terminated earlier by either party with [number] days’ written notice.

4. Confidentiality:
Both parties agree to maintain the confidentiality of all proprietary information shared during the course of the partnership negotiations.

5. Non-Binding:
This LOI is non-binding and is intended solely for discussion purposes. A formal partnership agreement will be executed upon mutual consent.

We look forward to further discussing this opportunity and finalizing a formal agreement.

Sincerely,

[Your Name]
[Your Title]
[Your Company Name]
[Contact Information]


Template 2: Asset Purchase

[Your Company Letterhead]

[Date]

[Recipient’s Name]
[Recipient’s Title]
[Recipient’s Company]
[Recipient’s Address]
[City, State, ZIP Code]

Dear [Recipient’s Name],

Subject: Letter of Intent for Asset Purchase

This Letter of Intent (LOI) sets forth the principal terms under which [Your Company Name] proposes to acquire certain assets from [Recipient’s Company Name]. This document is intended to provide a framework for negotiating a definitive asset purchase agreement.

1. Assets to be Purchased:
[Your Company Name] intends to purchase the following assets from [Recipient’s Company Name]:

  • [List the specific assets to be acquired, such as equipment, inventory, intellectual property, etc.]

2. Purchase Price:
The proposed purchase price for the assets is [amount], subject to adjustments as mutually agreed upon during due diligence.

3. Due Diligence:
[Your Company Name] will be granted a [number]-day period to conduct due diligence, including but not limited to reviewing financial records, inspecting the assets, and assessing legal and regulatory compliance.

4. Closing:
The closing of the transaction will occur on or before [closing date], contingent upon the satisfactory completion of due diligence and the execution of a definitive asset purchase agreement.

5. Confidentiality:
Both parties agree to keep all information related to this transaction confidential and will not disclose any details without prior written consent.

6. Non-Binding:
This LOI is non-binding and is intended as a basis for further negotiations. A binding agreement will be executed upon mutual consent.

We look forward to working with you to complete this transaction.

Sincerely,

[Your Name]
[Your Title]
[Your Company Name]
[Contact Information]


Template 3: Joint Venture

[Your Company Letterhead]

[Date]

[Recipient’s Name]
[Recipient’s Title]
[Recipient’s Company]
[Recipient’s Address]
[City, State, ZIP Code]

Dear [Recipient’s Name],

Subject: Letter of Intent for Joint Venture

This Letter of Intent (LOI) outlines the principal terms for the formation of a joint venture (JV) between [Your Company Name] and [Recipient’s Company Name]. The purpose of this JV is to [state the primary objective of the joint venture].

1. Purpose and Scope:
The JV will focus on [describe the main activities and goals of the joint venture]. Both parties will work collaboratively to achieve these objectives.

2. Contributions and Equity:
The contributions and equity stakes in the JV will be as follows:

  • [Your Company Name]: [Detail your company’s contributions and equity percentage]
  • [Recipient’s Company Name]: [Detail the recipient’s contributions and equity percentage]

3. Governance:
The JV will be governed by a board of directors consisting of [number] members, with representation from both parties. Decisions will be made based on [outline the decision-making process].

4. Financial Arrangements:
The parties will share profits and losses in proportion to their respective equity stakes. Funding requirements and capital contributions will be determined as needed.

5. Confidentiality:
Both parties agree to maintain the confidentiality of all proprietary information shared during the JV negotiations and operations.

6. Non-Binding:
This LOI is non-binding and intended solely for discussion purposes. A formal joint venture agreement will be executed upon mutual consent.

We are excited about the potential of this joint venture and look forward to further discussions.

Sincerely,

[Your Name]
[Your Title]
[Your Company Name]
[Contact Information]

Helpful Tables


Table 1: Key Components of a Letter of Intent

ComponentDescriptionExample
HeaderIncludes your company’s letterhead, date, and recipient’s details[Your Company Letterhead]<br>[Date]<br>[Recipient’s Name]<br>[Recipient’s Title]<br>[Recipient’s Company]<br>[Recipient’s Address]<br>[City, State, ZIP Code]
Subject LineBriefly states the purpose of the letterSubject: Letter of Intent for Partnership Agreement
IntroductionStates the intent of the letter and outlines the purpose of the potential agreementThis Letter of Intent (LOI) outlines the potential partnership between [Your Company] and [Recipient’s Company].
Objectives and ScopeDescribes the main goals and activities covered by the agreementThe partnership aims to [state the primary objectives and scope]. This will involve [brief description].
ResponsibilitiesDetails the responsibilities and contributions of each party[Your Company]: [Detail responsibilities]<br>[Recipient’s Company]: [Detail responsibilities]
Term and TerminationSpecifies the duration of the agreement and termination conditionsThe partnership will commence on [start date] and continue for [duration], unless terminated earlier.
ConfidentialityEnsures that proprietary information is kept confidentialBoth parties agree to maintain confidentiality of all shared information.
Non-Binding StatementClarifies that the LOI is non-binding and intended for discussion purposes onlyThis LOI is non-binding and intended solely for discussion purposes.
ClosingProvides a positive closing statement and contact informationWe look forward to finalizing this agreement.<br>Sincerely,<br>[Your Name]<br>[Your Title]<br>[Contact Information]

Table 2: Comparison of LOI Types

Type of LOIPurposeKey FeaturesIdeal For
Partnership AgreementTo outline the terms and conditions for a business partnership– Objectives and scope<br>- Responsibilities<br>- Term and termination<br>- ConfidentialityCompanies seeking a collaborative business relationship
Asset PurchaseTo propose the purchase of specific assets from another company– Assets to be purchased<br>- Purchase price<br>- Due diligence<br>- ConfidentialityBusinesses looking to acquire assets without purchasing the entire company
Joint VentureTo establish a new entity or project where two or more companies share resources and responsibilities– Purpose and scope<br>- Contributions and equity<br>- Governance<br>- Financial arrangementsCompanies aiming to combine strengths for a specific project or business area

Table 3: Timeline for Implementing a Letter of Intent

PhaseActivities and MilestonesTimelineResponsible Parties
Initial Discussion– Identify potential partners<br>- Discuss preliminary termsWeek 1-2Business Development Teams
Drafting LOI– Outline key terms<br>- Draft initial LOI<br>- Review internallyWeek 3-4Legal and Business Teams
Review and Negotiation– Send LOI to the other party<br>- Negotiate terms<br>- Revise as neededWeek 5-6Both Parties’ Legal and Business Teams
Due Diligence (if needed)– Conduct due diligence<br>- Verify financials, legal compliance, etc.Week 7-8Due Diligence Teams
Finalizing LOI– Final review<br>- Obtain necessary approvals<br>- Sign the LOIWeek 9Executive Management
Drafting Definitive Agreement– Draft the formal agreement based on LOI<br>- Review and negotiate final termsWeek 10-12Legal and Executive Teams
Signing Agreement– Finalize and sign the definitive agreementWeek 13Both Parties