Dictionary of Exit Planning Terms

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Letter of Intent

A letter from one company to another, acknowledging willingness and ability to enter into a sales transaction. A Letter of Intent is often used to acknowledge that a proposed acquisition or merger is being seriously considered. Letters of Intent are also use by lending institutions to indicate that they are interested in lending certain amounts of money at certain specific times and conditions.

A Letter of Intent is not a contract, and cannot be enforced; it is simply a document stating serious intent to enter into a transaction.