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this is attorney sarah holmes and today we want to tell you why its important to use a letter of intent when buying a business now a lot of intent is really an informal way to kick off a negotiation between a buyer and seller to a business purchase transaction now why would you do this well often people find a business to buy and maybe they know the listed price if its listed by a broker theres usually a price out there theres usually a business listing theyll typically have you sign a non-disclosure agreement and then at that point if the potential buyer decides they want to take the next step the next step would in fact be to execute a letter of intent meaning these are the terms under which you think you might buy this business so you would put in your offer like how much money are you offering for this business what documents do you expect to see in due diligence how long should the due diligence period last any contingencies that you need before you purchase the business so f