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this stage of the transaction, both the seller and the buyer (and their respective advisors) have developed a strategic plan and a tentative timetable for completion of the deal, have completed their analysis as to why the transaction is a strong financial and strategic fit for each party, and hopefully have taken the time to understand each other's perspective and the competing as well as aligned objectives. Buyers may enlist a financial advisor to assist in getting to this stage and helping the buyer ensure it is making decisions consistent with its financial and business goals. Thus, often the first agreement the buyer enters into in preparation of an acquisition is with its financial advisor, traditionally in the form of an engagement letter. The terms in an engagement letter must be carefully negotiated to account for the myriad of possible outcomes a buyer could encounter in the early stages of an acquisition.