The letter
Offer to buy a business letter: what goes in it and what it costs
Updated
An offer letter names the price, whether you buy the shares or the business and assets, the conditions such as due diligence and finance, and how long the owner gives you exclusively. It is usually stated not to be binding.
What the letter covers
Price and structure
The figure or range, how it is paid (cash at completion, deferred, an earn-out) and whether you are buying the company's shares or its business and assets.
Conditions
Due diligence, funding, keeping key staff and customers, and any consent the deal needs. Say what would change the price.
Exclusivity and confidentiality
A period in which the owner talks to no other buyer, and a promise to keep what you learn private. These two clauses are the ones usually made binding.
What the paperwork costs
Published prices
A heads of terms template from £42.50 plus VAT (Simply-Docs), a fixed-fee legal consultation from £250 plus VAT (Jonathan Lea Network) and business purchase legal help from £500 (Rocket Lawyer UK).