The initial step in starting a business, or in this case, a health practice, is to draft a letter of intent, also known as an LOI. This document usually encompasses the initial commitment of the party doing business and includes all the key details about the deal. Drafting an LOI could be difficult to handle on your own, get legal advice today.
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What is an LOI?
With an LOI you can close the gap that is there between your desire to acquire a health practice and the agreement of the sale. With the help of an attorney, you will be able to lay out the conditions for the seller. Note that this LOI will be an opening offer and will be drafted on the basis of the details that were given to the buyer by the seller.
Drafting an LOI:
Keep in mind that when you draft the LOI, it should not be too lengthy and should end within three pages. If you get an attorney to do it for you, be assured that the LOI will be more professional. However, you can choose to draft it on your own as well.
The things that one needs to include in their LOI are the purpose statement, the details of the parties who are involved along with the details of the practice that is being sold. It will also contain the deals that were proposed, the date on which it was accepted followed by closing statements. Lastly, the LOI needs to be signed by both parties.
Why is it important?
With the help of the LOI, both the seller and buyer will be able to safeguard themselves, making sure that each party has clarity on the agreement and the deals proposed. This will also help if there happens to be a dispute regarding the practice in the future.
Once the LOI is acknowledged, the party who is buying the practice will be able to go ahead with the next steps of buying the health practice and getting their loan approved.
Final thoughts:
There are a lot of measures to take into account when one drafts an LOI. And since it’s the first step to buying the health practice, it’s also the most important. While you may be able to handle it alone, get an attorney to do it for you for a smoother journey.