Document background
The Acquisition Term Sheet is a crucial preliminary document in Australian corporate transactions, typically prepared during the initial stages of a potential acquisition or merger. It serves as a roadmap for the transaction, documenting the fundamental commercial understanding between the parties before they commit significant resources to detailed due diligence and documentation. While predominantly non-binding, it demonstrates serious intent and typically includes certain binding provisions such as confidentiality, exclusivity, and break fees. The document is governed by Australian law and must consider various regulatory requirements, including those under the Corporations Act 2001 (Cth), Foreign Acquisitions and Takeovers Act 1975 (Cth), and Competition and Consumer Act 2010 (Cth). It is particularly useful in complex transactions where parties need to agree on key terms before proceeding with extensive due diligence and detailed transaction documents.
