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Proposal to Buy a Business

This document outlines a formal proposal to purchase an existing business, detailing the offer, terms, and conditions of the acquisition. It is suitable for individuals or entities looking to submit a structured bid.

Updated 16d ago
business acquisitionproposalmerger & acquisitioninvestmentoffer to purchase

Company Letterhead

{{company_name}}

{{company_address}}

Phone: {{phone}}

Email: {{email}}

Website: {{website}}

Date

{{date}}

To: Seller Information

{{seller_company_name}}

Attn: {{seller_contact_person}}

{{seller_address}}

Subject: Proposal to Purchase {{target_business_name}}

Dear {{seller_contact_person}},

This letter serves as a formal proposal from {{buyer_company_name}} ('the Buyer') to acquire 100% of the issued and outstanding shares / assets (select one) of {{target_business_name}} ('the Target Business'), located at {{target_business_address}}, under the terms and conditions outlined herein.

1. Proposed Purchase Price

The Buyer proposes to purchase the Target Business for a total consideration of {{currency_symbol}}{{purchase_price}} ({{purchase_price_words}}). This amount will be paid as follows:

a) A non-refundable deposit of {{currency_symbol}}{{deposit_amount}} upon the signing of a definitive Sale and Purchase Agreement.

b) The remaining balance of {{currency_symbol}}{{remaining_balance}} at the closing of the transaction.

2. Structure of the Transaction

The acquisition will be structured as an asset purchase / share purchase (select one). The Buyer is open to discussing alternative structures that may be mutually beneficial, subject to legal and tax considerations.

3. Conditions to Closing

This proposal and the subsequent definitive agreement will be subject to the satisfaction of the following conditions:

a) Completion of satisfactory due diligence by the Buyer within {{due_diligence_period}} days from the date of this proposal.

b) Negotiation and execution of a definitive Sale and Purchase Agreement mutually acceptable to both parties.

c) Obtaining any necessary third-party consents or regulatory approvals.

4. Exclusivity

In consideration of the Buyer’s efforts and expenses in conducting due diligence and negotiating a definitive agreement, we request a period of exclusivity of {{exclusivity_period}} days from the date of acceptance of this proposal, during which the Seller will not solicit or entertain other offers for the sale of the Target Business.

5. Confidentiality

All information exchanged between the parties in connection with this proposal shall be treated as strictly confidential and shall not be disclosed to any third party without prior written consent, except as required by law.

6. Governing Law

This proposal shall be governed by and construed in accordance with the laws of {{country_name}}.

7. Acceptance

If the terms of this proposal are acceptable, please signify your agreement by signing and returning a copy of this letter by {{response_deadline_date}}. This proposal is not a binding agreement and is subject to the execution of a definitive Sale and Purchase Agreement.

Signature Block

Sincerely,

___________________________

{{buyer_signer_name}}

{{buyer_signer_title}}

{{buyer_company_name}}

Accepted and Agreed:

___________________________

{{seller_signer_name}}

{{seller_signer_title}}

{{seller_company_name}}

Date: _______________

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