When a business is about to change hands—through a sale, merger, or acquisition—the process can move quickly. Both sides start imagining the possibilities, and momentum builds fast. But before anyone dives into due diligence, financial disclosures, or negotiation strategy, there’s one document that quietly shapes the entire transaction from the outset: the Letter of Intent (LOI).
At Casselman Legal, we view the LOI as a foundational tool. When drafted thoughtfully, it protects your interests long before the final agreement is signed.
A Letter of Intent outlines the key terms both parties intend to include in a future, binding purchase agreement. Although most LOIs are non‑binding, they still carry significant influence. They clarify expectations, reduce misunderstandings, and help determine whether it’s worthwhile to proceed with full due diligence.
It’s the handshake before the contract—only far more detailed and protective.
It Defines the Structure of the Deal
Asset sale or share sale? Purchase price or valuation formula? Payment terms?
These decisions have major tax, liability, and operational implications. The LOI ensures alignment early in the process.
It Sets Boundaries for Negotiations
A well‑crafted LOI prevents shifting terms and protects you from surprises later.
It Establishes Confidentiality and Exclusivity
Buyers often request exclusivity to conduct due diligence. Sellers often need strong confidentiality protections. The LOI is where these safeguards are established.
It Reduces Risk
Clear expectations reduce the chance of last‑minute deal‑breakers and help both sides understand what they’re committing to.
It Saves Time and Money
A strong LOI streamlines the drafting of the final purchase agreement and avoids unnecessary legal costs.
Whether you’re selling a family‑owned business or acquiring a strategic asset, Casselman Legal ensures your LOI is:
We don’t just fill in blanks—we help you build a solid foundation for a successful transaction.
If you’re considering buying or selling a business, your first step should be a conversation about your Letter of Intent. Casselman Legal can help you draft, review, or negotiate an LOI that protects your interests and sets the stage for a smooth, successful deal.