The Daily Business Review recently published an article authored by Gunster Shareholder Joe Chase. The article discusses letters of intent in connection with sales of businesses. In the article, Chase observes that, all too often, M&A lawyers are engaged after sellers have signed letters of intent. For reasons discussed in the article, this approach is usually a mistake.
In the article, Chase highlights key items that should be addressed in letters of intent, including, among others, purchase agreement terms and conditions, restrictive covenants, rollover terms, conditions to closing and exclusivity.
“Going into greater detail in letters of intent usually benefits sellers, as sellers frequently have the greatest leverage at the letter of intent stage,” Chase explains.
Joseph P. Chase is dedicated to serving as a trusted advisor to business owners, private equity firms, companies in a wide range of industries, and other clients. He represents clients in connection with sales and purchases of businesses, recapitalizations, debt and equity restructurings, executive compensation and incentive equity matters, as well as general corporate matters.
From working with entrepreneurs as they form new ventures to handling sales of companies with transaction values ranging from $1 million to over $1 billion, Joe is committed to working with business owners to identify the critical legal issues that matter to their companies, with a focus on implementing intelligent, efficient and practical solutions.