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1. Date and Parties: Identification of the seller and potential buyer, including full legal names and addresses
2. Background/Introduction: Brief description of the business being sold and the parties' intention to enter into negotiations for the sale
3. Purchase Price and Payment Terms: Proposed purchase price range or specific amount, payment structure, and any earnout considerations
4. Transaction Structure: Whether the sale will be structured as an asset sale or share sale
5. Due Diligence: Outline of the due diligence process, timeline, and access to information
6. Confidentiality: Binding provisions regarding the confidential treatment of information exchanged
7. Exclusivity Period: Binding provision specifying the period during which the seller cannot negotiate with other potential buyers
8. Timeline: Key dates and milestones for due diligence, definitive agreement, and closing
9. Non-Binding Nature: Clear statement that the LOI is non-binding except for specified provisions
10. Governing Law: Specification that the LOI is governed by Canadian law
11. Signatures: Execution blocks for all parties
1. Key Employee Arrangements: Used when retention of specific employees is crucial to the transaction
2. Regulatory Approvals: Include when the transaction may require competition law or other regulatory approvals
3. Break Fee: Used in larger transactions to specify fees if either party terminates negotiations
4. Deposit: Include when a good faith deposit is required
5. Financing Contingency: Used when buyer's obligation to proceed is contingent on obtaining financing
6. Asset/Liability Allocation: Include in asset sales to broadly outline what is included/excluded
7. Post-Closing Covenants: Used when seller's non-compete or transition assistance is crucial
8. Environmental Matters: Include for businesses with significant environmental considerations
9. Broker/Finder Fees: Include when intermediaries are involved in the transaction
1. Business Description: Detailed description of the business operations, assets, and structure
2. Key Assets: High-level list of major assets included in the sale
3. Excluded Assets/Liabilities: Preliminary list of assets/liabilities that will be excluded from the transaction
4. Key Financial Metrics: Summary of important financial information that forms basis of purchase price
5. Due Diligence Requirements: List of key documents and information required for due diligence
Transaction Structure
Purchase Price
Payment Terms
Due Diligence
Confidentiality
Exclusivity
Access to Information
Timeline
Conditions Precedent
Regulatory Approvals
Employee Matters
Non-Binding Nature
Binding Provisions
Governing Law
Expenses
Term and Termination
Good Faith Negotiations
Break Fee
Deposit
Representations and Warranties
Non-Solicitation
Notices
Assignment
Entire Agreement
Counterparts
Third Party Rights
Dispute Resolution
Manufacturing
Retail
Technology
Professional Services
Healthcare
Hospitality
Construction
Real Estate
Financial Services
Transportation
Agriculture
Energy
Mining
Entertainment
Education
Telecommunications
Legal
Finance
Corporate Development
Mergers & Acquisitions
Executive Leadership
Business Development
Corporate Secretary Office
Strategy
Tax
Compliance
Due Diligence
Chief Executive Officer
Chief Financial Officer
Business Owner
Managing Director
Corporate Lawyer
Business Development Manager
Mergers & Acquisitions Director
Investment Banker
Business Broker
Corporate Secretary
General Counsel
Finance Director
Board Member
Private Equity Manager
Business Unit Head
Chief Operating Officer
Chief Legal Officer
Transaction Advisory Partner
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