Sample Letter Of Intent To Purchase printable pdf download

Sample Letter of Intent to Purchase

Dear Business Owner:

Based on the financial information you provided, I am pleased to offer Letter of Intent (LOI) to purchase

____________________________(business name) at ________________(address) from _______ (owner). This agreement is

non-binding. A formal purchase agreement with earnest money will be executed after the agreement of this

letter of intent with final analysis of the business. Below is an outline summarizing general LOI terms and

conditions to purchase for you and _____(real estate broker) to review.

(1) Total purchase price: $_________ ($

for real estate, $

for Furniture, Fixtures and Equipment $

for inventory and

for working capital/closing cost budget, includes SBA fee).

- Seller Note $XXX (Terms acceptable to bank and buyer)

- Equity Injection $ XXX Borrower

= Proposed Loan $XXX SBA

Approximate Payment $ XX/mo. Term 25 years @ 6% fixed, fully amortizing

SBA Fee (approx.) $ XXX

** real estate pricing computed on change in Moodys/REAL Commercial Property Price Index (CPPI) 40%

decrease since 2006 appraisal

(2) Seller agrees to cooperate with the Buyer's due diligence investigation of the Business and to provide the buyer

and its representatives with prompt and reasonable access to key employees and to books, records, contracts and

other information pertaining to the Business

(3) Business sale to meet these contingencies:

Acceptable review of certified financials and general ledger with accountant in addition

b. Seller to provide copy last 3 year completed tax returns & detailed P&Ls

Acceptable appraisal of business

d. Acceptable appraisal of real estate

Acceptable full inventory count & appraisal

Acceptable non-compete seller clause not to compete covering including all managers/officers, directors

and shareholders of Seller, within a 500 mile radius for period of 10 years.

g. Acceptable agreement /transfer of franchise

h. Acceptable franchise business & marketing records

Acceptable transferability of vendors/suppliers, service contracts & agreements

List of employee bios, names, titles & experience rates of pay and hours

Acceptable reconciled operating and asset inventory list

Acceptable transfer of business cash accounts and total accounts receivable (Total accounts receivable)

m. All equipment, machinery and vehicles have up to date service and in good working condition at time of

purchase

n. Business passes any and all necessary inspections and is ADA complaint

o. Buyer will assume as of the closing date only those liabilities and obligations (i) arising in connection with

the operation of the Business by the Purchaser after the closing date, and (ii) arising after the closing date

in connection with the performance by the buyer of the contracts and agreements associated with the

Business.

p. Seller to split costs with buyer for appraisal fees and closing costs

q. Seller responsible for all broker commissions and costs as required.

Sample Letter Of Intent To Purchase

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