When do I use this document? for the shareholders agreement between multiple investors and the founders where the investment is being documented in a separate subscription agreement for a private limited company incorporated in England and Wales in conjunction with a Subscription Agreement and new Articles of Association for Paper Rock’s associated Subscription Agreement and Articles of Association, see Subscription Agreement – established business multiple investors Articles of Association – established business multiple investors What are the key features? full form shareholders agreement 27 clauses and 4 schedules over 30 pages investor rights: exercisable by a majority of the investors directors: investor director: investors’ entitlement to appoint a director other directors: the founder shareholder(s) rights to appoint a director board proceedings: how proceedings of the board will be conducted information rights: rights to information for the investors and other shareholders about the company and its finances future share issues: pre-emption rights on the issue of new shares share transfers: rules governing the transfer of shares, including: pre-emption rights on share transfers compulsory transfer events, including founder good and bad leaver clauses tag-along and drag-along rights reserved matters: matters requiring prior approval from the investors (acting by investor majority) and other shareholders restrictive covenants: restrictions on the founders from competing with the company and soliciting the company’s customers, suppliers and employees What other documents are available? For a combined Investment & Shareholders Agreement for an established business with multiple investors, see Investment and Shareholders Agreement – established business multiple investors For a standalone Shareholders Agreement for an established business with a single investor, see Shareholders Agreement – established business single investor For standalone Shareholders Agreements for start-up business, see Shareholders Agreement – start up business single investor Shareholders Agreement – start up business multiple investors

Letter of Intent: Share Purchase multiple sellers group

Letter of intent for the sale by multiple sellers of a company which has one or more subsidiaries. It outlines the principal sale terms on a non-legally binding basis with legally-binding provisions covering confidentiality, exclusivity and costs.

for a proposed transaction involving the sale of a company including one or more subsidiaries
where the target company is owned by multiple shareholders
to set out the principal agreed terms for the transaction on a non-legally binding basis
as a preliminary step before preparing long form agreements
to save time and future discussion and negotiation on the transaction documents

What are the key features?

comprehensive letter of intent covering aspects such as:
- principal sale terms
- shareholdings of the sellers
- various consideration options, including upfront consideration at closing, deferred consideration, earnout consideration and completion accounts adjustment
- conditions for the transaction
- principal terms of the Share Purchase Agreement
transaction process and timetable
legally binding provisions addressing:
- exclusivity for the buyer for a defined period (if agreed)
- confidentiality of the letter of intent
- costs
- governing law and jurisdiction

What other documents are available?

For alternative forms of letter of intent for a company sale transaction, see:

Description

When do I use this document?

for the shareholders agreement between multiple investors and the founders
where the investment is being documented in a separate subscription agreement
for a private limited company incorporated in England and Wales
in conjunction with a Subscription Agreement and new Articles of Association
for Paper Rock’s associated Subscription Agreement and Articles of Association, see
- Subscription Agreement – established business multiple investors
- Articles of Association – established business multiple investors

What are the key features?

full form shareholders agreement
27 clauses and 4 schedules over 30 pages
investor rights: exercisable by a majority of the investors
directors:
- investor director: investors’ entitlement to appoint a director
- other directors: the founder shareholder(s) rights to appoint a director
board proceedings: how proceedings of the board will be conducted
information rights: rights to information for the investors and other shareholders about the company and its finances
future share issues: pre-emption rights on the issue of new shares
share transfers: rules governing the transfer of shares, including:
- pre-emption rights on share transfers
- compulsory transfer events, including founder good and bad leaver clauses
- tag-along and drag-along rights
reserved matters: matters requiring prior approval from the investors (acting by investor majority) and other shareholders
restrictive covenants: restrictions on the founders from competing with the company and soliciting the company’s customers, suppliers and employees

What other documents are available?

For a combined Investment & Shareholders Agreement for an established business with multiple investors, see

Investment and Shareholders Agreement – established business multiple investors

For a standalone Shareholders Agreement for an established business with a single investor, see

Shareholders Agreement – established business single investor

For standalone Shareholders Agreements for start-up business, see

Explanatory Guides

As with all of our document templates, your purchase will include access to clear explanatory guidance on the document and its use.

£50.00 exc VAT

Updated by a lawyer on 10/09/2024

Updated By a lawyer on 05/09/2023

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Letter of Intent: Share Purchase multiple sellers group

When do I use this document?

What are the key features?

What other documents are available?

When do I use this document?

What are the key features?

What other documents are available?

Explanatory Guides

As with all of our document templates, your purchase will include access to clear explanatory guidance on the document and its use.

Create your document in 3 Easy Steps

PaperRock offers affordable, legal document templates, written by experienced and expert lawyers, trusted by businesses across the UK and beyond. No hidden charges or trial sign-ups are required to complete your document.

“I have worked in legal and business affairs for over 25 years and need access to a wide range of corporate and commercial legal precedents. Paperrock is a refreshing source of high-quality legal templates. Superb value for money.”

Amanda | Bannister Creative

“It’s hard to find legal documents on the internet you can really trust. Knowing an expert lawyer has drafted what I need, gives my business the edge and gives me peace of mind.”

Elle, Founder | Winslow skincare & aesthetics.

“As an SME Paperrock saves us the legal fees we’ve previously had to spend. In these challenging times that's a big help. Great products and support.”

Giles, MD | Boniti Ltd.

Letter of Intent: Share Purchase multiple sellers group

When do I use this document?

What are the key features?

What other documents are available?

When do I use this document?

What are the key features?

What other documents are available?

Explanatory Guides

As with all of our document templates, your purchase will include access to clear explanatory guidance on the document and its use.

Related Articles

Create your document in 3 Easy Steps

PaperRock offers affordable, legal document templates, written by experienced and expert lawyers, trusted by businesses across the UK and beyond. No hidden charges or trial sign-ups are required to complete your document.

“I have worked in legal and business affairs for over 25 years and need access to a wide range of corporate and commercial legal precedents. Paperrock is a refreshing source of high-quality legal templates. Superb value for money.”

Amanda | Bannister Creative

“It’s hard to find legal documents on the internet you can really trust. Knowing an expert lawyer has drafted what I need, gives my business the edge and gives me peace of mind.”

Elle, Founder | Winslow skincare & aesthetics.

“As an SME Paperrock saves us the legal fees we’ve previously had to spend. In these challenging times that's a big help. Great products and support.”

Giles, MD | Boniti Ltd.

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