Loi For Business Purchase for New Zealand

Loi For Business Purchase Template for New Zealand

A Letter of Intent (LOI) for Business Purchase under New Zealand law is a preliminary document that outlines the proposed terms and conditions for the acquisition of a business. This document, while primarily non-binding except for specific provisions such as confidentiality and exclusivity, serves as a framework for negotiations and future definitive agreements. It typically includes key commercial terms, proposed transaction structure, due diligence requirements, and timelines, all governed by New Zealand law and considering local regulatory requirements, particularly the Contract and Commercial Law Act 2017 and other relevant legislation.

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What is a Loi For Business Purchase?

The LOI For Business Purchase is a crucial preliminary document used in New Zealand business acquisitions to establish the framework for negotiations between potential buyers and sellers. It is typically employed after initial discussions but before detailed due diligence and final purchase agreements. The document outlines key commercial terms, conditions, and timelines while maintaining a generally non-binding nature, except for specific provisions like confidentiality and exclusivity. Under New Zealand law, this document helps parties align their expectations and provides a roadmap for the transaction, considering local regulatory requirements, including the Contract and Commercial Law Act 2017, Companies Act 1993, and where applicable, the Overseas Investment Act 2005. The LOI serves as a foundation for more detailed negotiations and helps secure commitment from both parties while maintaining flexibility for the final terms.

What sections should be included in a Loi For Business Purchase?

1. Date and Parties: Identification of the parties including full legal names, addresses, and company registration numbers if applicable

2. Introduction: Brief statement of intent to explore the potential purchase of the business

3. Business Description: Clear identification of the target business, including its legal entity, trading names, and main business activities

4. Key Transaction Terms: Outline of the proposed purchase price (or price range), payment structure, and key assets/liabilities included

5. Due Diligence: Process and timeline for conducting due diligence investigations

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

7. Confidentiality: Binding provisions regarding the confidential treatment of information exchanged

8. Exclusivity: If applicable, binding provisions for exclusive negotiations for a specified period

9. Costs: Each party's responsibility for their own costs and expenses

10. Non-Binding Nature: Clear statement that the LOI is non-binding except for specified provisions

11. Governing Law: Specification of New Zealand law as governing law

12. Signature Block: Space for parties to sign and date the letter

What sections are optional to include in a Loi For Business Purchase?

1. Employee Matters: Include when the business has significant employee base - outlines intended approach to existing employees

2. Regulatory Approvals: Include when the transaction may require regulatory approvals (e.g., OIO consent for foreign buyers)

3. Material Contracts: Include when there are key contracts requiring special treatment or third-party consents

4. Intellectual Property: Include when IP assets are a significant part of the business value

5. Break Fee: Include when parties want to specify compensation if either party terminates negotiations

6. Post-Completion Management: Include when seller's ongoing involvement is contemplated post-completion

7. Warranty and Indemnity Insurance: Include when W&I insurance is contemplated for the final transaction

What schedules should be included in a Loi For Business Purchase?

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

2. Indicative Timeline: Detailed timeline showing key dates and milestones

3. Due Diligence Requirements: List of documents and information required for due diligence

4. Excluded Assets/Liabilities: Clear list of any assets or liabilities specifically excluded from the proposed transaction

5. Required Consents: List of third-party or regulatory consents needed for the 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

New Zealand

Publisher

Genie AI

Document Type

Letter of Intent

Cost

Free to use
Relevant Industries

Retail

Manufacturing

Technology

Professional Services

Healthcare

Hospitality

Agriculture

Construction

Education

Financial Services

Real Estate

Transportation and Logistics

Mining and Resources

Media and Entertainment

Telecommunications

Relevant Teams

Legal

Finance

Corporate Development

Mergers & Acquisitions

Strategy

Executive Leadership

Due Diligence

Commercial

Risk Management

Compliance

Business Development

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Managing Director

Business Development Manager

Corporate Lawyer

In-house Counsel

Commercial Director

Mergers & Acquisitions Manager

Investment Manager

Business Owner

Company Director

Financial Controller

Strategy Manager

Corporate Development Manager

Due Diligence 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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