Letter Of Intent To Sell Business for Switzerland

Letter Of Intent To Sell Business Template for Switzerland

A Letter of Intent to Sell Business under Swiss law is a preliminary document that outlines the proposed terms and conditions for the sale of a business. This document, while primarily non-binding except for specific provisions like confidentiality and exclusivity, serves as a framework for subsequent negotiations and the final purchase agreement. It incorporates key considerations under Swiss commercial law, particularly the Swiss Code of Obligations, and addresses essential elements such as transaction structure, preliminary pricing, due diligence processes, and timeline for completion.

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What is a Letter Of Intent To Sell Business?

A Letter Of Intent To Sell Business is a crucial preliminary document used in Swiss business transactions when a company or business owner intends to sell their business to a potential buyer. This document is particularly relevant in the Swiss market, where business transactions must comply with the Swiss Code of Obligations and related commercial laws. The LOI serves as a roadmap for the transaction, outlining key terms, conditions, and processes while typically maintaining non-binding status for most provisions except specific clauses like confidentiality and exclusivity. It's commonly used before entering into detailed negotiations and due diligence, helping parties align their expectations and establish a framework for the potential transaction. The document typically precedes the more detailed Share Purchase Agreement or Asset Purchase Agreement.

What sections should be included in a Letter Of Intent To Sell Business?

1. Date and Parties: Identification of the potential seller and buyer, including full legal names and addresses

2. Business Identification: Clear description of the business being considered for sale, including legal entity name, registration details, and location

3. Transaction Structure: Proposed structure of the transaction (share sale vs. asset sale) and preliminary purchase price or price range

4. Key Terms: Essential elements of the proposed transaction including payment terms, assets/liabilities included, and any major conditions

5. Due Diligence: Outline of the proposed due diligence process, timeline, and access to information

6. Timeline: Proposed schedule for key milestones including due diligence, definitive agreement negotiation, and closing

7. Binding Provisions: Explicitly state which provisions are intended to be legally binding

What sections are optional to include in a Letter Of Intent To Sell Business?

1. Employee Matters: Include when the business has significant employees and their transfer needs to be addressed specifically

2. Regulatory Approvals: Include when the transaction may require specific regulatory clearances

3. Exclusivity Period: Include when seller agrees not to negotiate with other potential buyers for a specific period

4. Break Fee: Include when parties want to specify compensation if either party withdraws from negotiations

5. Interim Operations: Include when there's a need to specify how the business should be operated during negotiations

6. Financing Conditions: Include when the buyer's ability to complete the transaction is subject to obtaining financing

What schedules should be included in a Letter Of Intent To Sell Business?

1. Key Assets Schedule: List of main assets included in the potential transaction

2. Preliminary Price Calculation: Basic framework for how the purchase price was/will be determined

3. Due Diligence Checklist: Initial list of documents and information required for due diligence

4. Timeline Schedule: Detailed timeline with specific dates for key milestones

5. Excluded Assets/Liabilities: List of any assets or liabilities specifically excluded from the potential transaction

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Switzerland

Publisher

Genie AI

Cost

Free to use
Relevant Industries

Manufacturing

Financial Services

Technology

Pharmaceuticals

Healthcare

Retail

Hospitality

Professional Services

Real Estate

Construction

Logistics

Consumer Goods

Energy

Telecommunications

Relevant Teams

Legal

Finance

Corporate Development

Mergers & Acquisitions

Executive Leadership

Business Development

Compliance

Due Diligence

Corporate Secretariat

Risk Management

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Managing Director

Business Owner

Corporate Lawyer

Legal Counsel

M&A Director

Investment Banker

Business Development Director

Corporate Development Manager

Board Member

Company Secretary

Financial Controller

Due Diligence Manager

Transaction Advisory Partner

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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