Letter Of Interest For Business Purchase Template for Indonesia

The Letter of Interest for Business Purchase is a crucial initial document in business acquisition processes within the Indonesian legal framework. It serves as a formal expression of interest from a potential buyer to a target company, typically used when a company has identified a potential acquisition target and wants to formally communicate their interest while maintaining confidentiality. The document outlines preliminary terms, proposed valuation ranges, and the scope of the potential transaction, while clearly stating its generally non-binding nature (except for specific provisions like confidentiality). In Indonesia, this document must comply with various regulations including the Company Law (Law No. 40 of 2007) and Investment Law (Law No. 25 of 2007), particularly when foreign investors are involved. The letter often precedes more detailed agreements such as Memorandums of Understanding or Share Purchase Agreements, and helps establish the framework for subsequent negotiations and due diligence processes.

1. Letterhead and Date: Company letterhead of the interested buyer and current date

2. Recipient Details: Full name, title, and address of the target company's representative

3. Subject Line: Clear indication that this is a Letter of Interest for purchasing the business

4. Introduction: Brief introduction of the interested buyer's company and statement of interest in purchasing the target business

5. Target Business Identification: Clear identification of the business being considered for purchase

6. Preliminary Terms: Initial proposed terms including rough purchase price range and basic structure of the proposed transaction

7. Due Diligence Request: Expression of intent to conduct due diligence and request for access to necessary information

8. Timeline: Proposed timeline for negotiations and completion of the transaction

9. Non-Binding Nature: Clear statement that the letter is non-binding except for specific provisions

10. Confidentiality Statement: Statement regarding the confidential nature of discussions and information

11. Contact Information: Details of key contact person for further discussions

12. Closing and Signature: Professional closing, name and signature of authorized representative