Will You Be Mine? Setting Transaction Boundaries with Letters of Intent

Before engaging in an acquisition or joint venture, it is both customary and best practice to identify the key terms of the business deal in a letter of intent (LOI) or term sheet. The LOI or term sheet outlines the important transaction terms and confirms the transaction parties have a mutual understanding about the acquisition before committing time, resources, and money to negotiate a deal. Without an LOI or term sheet, the transaction parties risk engaging in costly negotiations and breaking up before executing a definitive agreement. Refer to this practice note for a simple breakdown of the importance of LOIs in private M&A deals.      

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