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The Business Purchase Offer Letter is a crucial document used in the initial stages of business acquisition processes in Malaysia. It serves as the first formal step in negotiating a business purchase, presenting the potential buyer's serious intent and key terms to the current business owner. This document, while not legally binding in its entirety, typically contains certain binding elements such as confidentiality provisions and exclusivity periods. Under Malaysian jurisdiction, it must comply with the Contracts Act 1950 and other relevant business legislation. The letter outlines essential elements including purchase price, payment terms, scope of assets or shares to be acquired, due diligence requirements, and key conditions precedent. It forms the foundation for subsequent negotiations and the eventual formal sale and purchase agreement.

1. Letter Date and Address Block: Full contact details of both the sender (potential buyer) and recipient (current business owner)

2. Subject Line: Clear indication that this is an offer to purchase the specified business

3. Opening Statement: Formal introduction and clear statement of intent to purchase the business

4. Business Identification: Precise details of the business being offered to purchase, including registered name, registration number, and location

5. Purchase Price: Clear statement of the offered purchase price and payment terms

6. Key Terms: Outline of fundamental terms including what is included in the purchase (assets, liabilities, intellectual property, etc.)

7. Due Diligence: Statement regarding the requirement for and scope of due diligence investigation

8. Conditions Precedent: Key conditions that must be met before proceeding with the purchase

9. Timeline: Proposed timeline for completion of the transaction and validity period of the offer

10. Confidentiality Statement: Statement regarding the confidential nature of the offer and discussions

11. Closing and Signature: Professional closing, signature block, and contact information for further discussions