Letter of intent (LOI)

What is a letter of intent?

A letter of intent (LOI), in Swedish avsiktsförklaring, is a document in which the parties describe that they intend to complete a deal, such as the acquisition of a company. It often sets out price or valuation, timetable and conditions. An LOI is generally not binding as a whole, though parts such as confidentiality and exclusivity may be.

From letter of intent to agreement

An LOI is often followed by due diligence and then a binding share purchase agreement. A traceable share ledger simplifies the ownership review.