The Heads of Terms (HOT) document or the Letter of Intent (LOI) as it is often referred to is the main document which conveys the details of an offer to be made by the buyer to the sellers of the company. It should contain as much relevant information as possible about the deal. The main aspects will include: the price; the percentage of share capital being purchased; the completion payment; the deferred element (if applicable); the timeframes and mechanism for repayment of any deferred consideration; the role(s) for any retained Directors; an indication of the exclusivity period pertaining to the offer; etc.
