Letter Of Interest For Business Purchase for Malaysia

Letter Of Interest For Business Purchase Template for Malaysia

A Letter of Interest for Business Purchase under Malaysian law is a formal preliminary document that expresses a potential buyer's serious intent to purchase a business. This document, while generally non-binding except for specific provisions like confidentiality, serves as a crucial first step in the business acquisition process within the Malaysian legal framework. It outlines key terms such as the proposed transaction structure, indicative price range, and timeline, while adhering to Malaysian business law requirements, including considerations under the Companies Act 2016 and Contracts Act 1950.

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What is a Letter Of Interest For Business Purchase?

A Letter Of Interest For Business Purchase is a crucial preliminary document used in Malaysian business acquisitions to formally initiate the purchase process. It serves as a bridge between initial discussions and a formal purchase agreement, typically used when a potential buyer has identified a target business and wishes to express serious acquisition intent while maintaining legal flexibility. The document operates within Malaysia's common law system, modified by statutory requirements including the Companies Act 2016 and Contracts Act 1950. It contains essential elements such as proposed transaction structure, preliminary valuation, due diligence requirements, and timeline, while usually maintaining a non-binding nature except for specific provisions like confidentiality and exclusivity.

What sections should be included in a Letter Of Interest For Business Purchase?

1. Sender and Recipient Details: Complete business names, addresses, and contact information of both parties

2. Date: Current date of the letter

3. Subject Line: Clear indication that this is a Letter of Interest for Business Purchase

4. Introduction: Brief introduction of the interested party and their business background

5. Expression of Interest: Clear statement of interest in purchasing the target business

6. Business Description: Identification and brief description of the target business

7. Proposed Transaction Structure: High-level overview of how the purchase would be structured

8. Indicative Price Range: Preliminary indication of the proposed purchase price range or valuation methodology

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

10. Timeline: Proposed timeline for due diligence and transaction completion

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

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

13. Closing and Signature: Professional closing, signature block, and contact information

What sections are optional to include in a Letter Of Interest For Business Purchase?

1. Financing: Include when there's a need to specify the intended source of funding or financing contingencies

2. Exclusivity Period: Include when requesting exclusive negotiation rights for a specific period

3. Key Personnel Retention: Include when there's interest in retaining specific key employees or management

4. Regulatory Approvals: Include when the transaction may require specific regulatory or governmental approvals

5. Asset Inclusion/Exclusion: Include when certain assets or liabilities need to be specifically included or excluded from the potential transaction

6. Post-Closing Cooperation: Include when transition support or ongoing cooperation needs to be highlighted

7. Broker/Advisor Information: Include when intermediaries or advisors are involved in the transaction

What schedules should be included in a Letter Of Interest For Business Purchase?

1. Preliminary Terms Sheet: High-level summary of key commercial terms being proposed

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

3. Corporate Information: Basic corporate information about the interested buyer

4. Proof of Funds: Evidence of financial capability to complete the transaction

5. Timeline Schedule: Detailed proposed timeline for transaction milestones

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

Malaysia

Publisher

Genie AI

Document Type

Letter of Intent

Cost

Free to use
Relevant Industries

Manufacturing

Retail

Technology

Healthcare

Food and Beverage

Real Estate

Professional Services

Construction

Hospitality

Education

Agriculture

Logistics

E-commerce

Financial Services

Entertainment

Relevant Teams

Legal

Finance

Corporate Development

Mergers & Acquisitions

Executive Leadership

Strategy

Risk Management

Compliance

Business Development

Investment

Relevant Roles

Chief Executive Officer

Managing Director

Business Development Manager

Corporate Lawyer

Chief Financial Officer

Investment Manager

Mergers & Acquisitions Director

Business Owner

Company Secretary

Financial Controller

Strategy Director

Corporate Development Manager

Due Diligence Manager

Legal Counsel

Risk Manager

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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