Document background
The Buyout Term Sheet is a crucial document used in the initial stages of merger and acquisition transactions in Canada. It serves as a roadmap for the transaction, documenting the parties' preliminary understanding of key commercial and legal terms before proceeding with detailed due diligence and definitive agreements. The document typically follows Canadian market practice and must consider various federal and provincial regulations, including securities laws, competition law, and corporate legislation. While most provisions are non-binding, certain sections like confidentiality and exclusivity are typically binding. The term sheet helps align parties' expectations early in the process, reducing the risk of misunderstandings during later negotiations and potentially saving significant time and costs.
