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Unusual Letter Of Intent To Apply

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Confidential information and agreeing not to use it for competitive purposes: Matters concerning the due diligence investigation are to be treated in confidence and the purchaser will not either directly or through his representatives divulge any such information. The purchaser is also bound not to use the information gained through due diligence investigations in competition with the seller even if the proposed sale falls through.

Some brokers advise to skip the LOI and go straight to the purchase agreement and an LOI is not typically used in the market at large. So, why do we advocate the use of an LOI when purchasing a business?

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