The coal industry, like many other segments of the energy and mining industries, has seen a number of acquisitions and divestitures in the last few years. Many of these transactions likely began with intense negotiations over key business points, the results of which were eventually documented in a letter of intent. However, once the letter of intent was signed and the excitement of the announcement had worn off, it was time to work out the details. At that point, the parties learned very quickly whether the letter of intent would serve as a help or a hindrance in reaching the final closing of the transaction. A well planned and thought out letter of intent can map an agreed upon route to the closing and actually facilitate the preparation of the definitive agreements.
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Reprinted with permission from Coal Age Magazine