This template is sponsored by 

Business Acquisition Proposal Template

[Acquirer name]

[Acquirer CEO/Shareholder]

[Street address,

City, country,

Postal code



[Target name]

[Target CEO/Shareholder]

[Street address,

City, country,

Postal code]


Strictly Private & Confidential/Subject to contract

[City], [20th] [June] 202[0]



Acquisition of the business and assets of [Target name]

Dear [Target CEO/Shareholder],

This letter of intent from [Acquirer name] is sent in respect of a potential acquisition of [Target name]. We appreciate the time and energy you and your team have afforded us in discussing this opportunity and the information that has been provided thus far.


Our evaluation shows that [Target name] acquisition would bolster our [segment name] segment and bring synergy with our other business segments. Acquiring [Target name] would also bring unique value and capabilities to services we provide to the market. Below are the terms for potential acquisition of [Target name].

Transaction Overview and Structure

Based on our preliminary review of the information provided and subject to the conditions set forth below, [Acquirer name] is pleased to submit this non-binding letter of intent. We propose purchasing [100]% of the equity of the [Target name] for $[15] million (price may change upon the results of Due Diligence).

We offer a total purchase price of $[15] million consisting of:

▪ $[7] million of cash;

▪ $[2] million - shares of [Acquirer name], issued immediately upon closing and not

subject to any vesting period representing approximately [10]% of [Acquirer name];

▪ $[3] million of debt taken on the [Target name] balance;

▪ $[5] million of performance upside - performance payout upon achieving the following targets/milestones:

o Milestone 1: Revenue of $[X] million in year 20[XX]

o Milestone 2: [Insert milestone] in year 20[XX]

Deal Timeline

We propose the following deal timeline:

▪ [Insert date]: Financial, operational and technical due diligence

▪ [Insert date]: Site/office visit to [Target name], term sheet signing

▪ [Insert date]: Drafting of legal documentation

▪ [Insert date]: Signing, money and ownership transferInsert Acquirer company logo if applicable

Due Diligence

Due to the nature of this transaction we require a thorough and complete due diligence (fully paid by us if needed) even after conducting a preliminary data review. We envision that remaining due diligence would include, but would not be limited to, commercial, accounting, financial, technical, [insert DD segment] due diligence, as well as customary legal, tax and regulatory work. We believe that we can complete our due diligence within [8] weeks from the date our proposal is accepted.

Exclusivity & Confidentiality

If shareholders of [Target name] are interested in pursuing the proposed Transaction, we would require [70] days of exclusivity to finalize our due diligence, draft and negotiate legal documentation, subject to a [30]-day extension upon the agreement of both parties. We are ready to sign an additional confidentiality agreement to access to [Target name] information and the ability to share that information with our prospective equity partners and debt financing sources in a manner that protects the confidentiality of your information and our discussions.

Non-Binding Commitment

This non-binding indication of interest is confidential and may not be disclosed other than to you, the Company and/or its shareholders and its advisors on a strictly need-to-know basis. We look forward to working with you to close this deal keeping in mind the interest of all parties to this transaction.

Kind regards,


Acquirer CEO/Shareholder

[Title]


Mobile: +X (XXX) XXX XX XX

Tel: +X (XXX) XXX XX XX

e-mail: user@domain.com

private equity icon

Business Acquisition Proposal Template

[Acquirer name]

[Acquirer CEO/Shareholder]

[Street address,

City, country,

Postal code



[Target name]

[Target CEO/Shareholder]

[Street address,

City, country,

Postal code]


Strictly Private & Confidential/Subject to contract

[City], [20th] [June] 202[0]



Acquisition of the business and assets of [Target name]

Dear [Target CEO/Shareholder],

This letter of intent from [Acquirer name] is sent in respect of a potential acquisition of [Target name]. We appreciate the time and energy you and your team have afforded us in discussing this opportunity and the information that has been provided thus far.


Our evaluation shows that [Target name] acquisition would bolster our [segment name] segment and bring synergy with our other business segments. Acquiring [Target name] would also bring unique value and capabilities to services we provide to the market. Below are the terms for potential acquisition of [Target name].

Transaction Overview and Structure

Based on our preliminary review of the information provided and subject to the conditions set forth below, [Acquirer name] is pleased to submit this non-binding letter of intent. We propose purchasing [100]% of the equity of the [Target name] for $[15] million (price may change upon the results of Due Diligence).

We offer a total purchase price of $[15] million consisting of:

▪ $[7] million of cash;

▪ $[2] million - shares of [Acquirer name], issued immediately upon closing and not

subject to any vesting period representing approximately [10]% of [Acquirer name];

▪ $[3] million of debt taken on the [Target name] balance;

▪ $[5] million of performance upside - performance payout upon achieving the following targets/milestones:

o Milestone 1: Revenue of $[X] million in year 20[XX]

o Milestone 2: [Insert milestone] in year 20[XX]

Deal Timeline

We propose the following deal timeline:

▪ [Insert date]: Financial, operational and technical due diligence

▪ [Insert date]: Site/office visit to [Target name], term sheet signing

▪ [Insert date]: Drafting of legal documentation

▪ [Insert date]: Signing, money and ownership transferInsert Acquirer company logo if applicable

Due Diligence

Due to the nature of this transaction we require a thorough and complete due diligence (fully paid by us if needed) even after conducting a preliminary data review. We envision that remaining due diligence would include, but would not be limited to, commercial, accounting, financial, technical, [insert DD segment] due diligence, as well as customary legal, tax and regulatory work. We believe that we can complete our due diligence within [8] weeks from the date our proposal is accepted.

Exclusivity & Confidentiality

If shareholders of [Target name] are interested in pursuing the proposed Transaction, we would require [70] days of exclusivity to finalize our due diligence, draft and negotiate legal documentation, subject to a [30]-day extension upon the agreement of both parties. We are ready to sign an additional confidentiality agreement to access to [Target name] information and the ability to share that information with our prospective equity partners and debt financing sources in a manner that protects the confidentiality of your information and our discussions.

Non-Binding Commitment

This non-binding indication of interest is confidential and may not be disclosed other than to you, the Company and/or its shareholders and its advisors on a strictly need-to-know basis. We look forward to working with you to close this deal keeping in mind the interest of all parties to this transaction.

Kind regards,


Acquirer CEO/Shareholder

[Title]


Mobile: +X (XXX) XXX XX XX

Tel: +X (XXX) XXX XX XX

e-mail: user@domain.com

FAQ

Can I change requests in this checklist or add new?

Every M&A and due diligence process is different. Downloaders are urged to make these checklists their own by changing the providing information to better fit their needs.

Does this questionnaire provide all the necessary due diligence information?

Easily Collect Data Using this Template in DealRoom
How to use the template with DealRoom:
  • Download the due diligence template from DealRoom’s website
  • Open a room within DealRoom
  • Go to the Requests tab and select “import”
  • Import the downloaded template

The Requests tab is automatically populated with the requests from the due diligence template. Users can begin assigning, adding to, and completing due diligence requests.

Use DealRoom’s Premade Templates

Quick, easy download
Import into the room in a less than minute
Immediately begin requesting due diligence documents
or
M&A Science