Document background
An Acquisition Term Sheet is a crucial preliminary document used in the early stages of merger and acquisition transactions in Hong Kong. It sets out the fundamental terms and understanding between parties before proceeding with detailed due diligence and negotiating definitive agreements. While primarily non-binding, it typically includes certain binding provisions such as confidentiality, exclusivity, and governing law clauses. The document reflects Hong Kong's legal and business practices, considering local corporate laws, securities regulations, and market conventions. It serves as a roadmap for the transaction, covering essential elements like deal structure, valuation, conditions precedent, and timing, while allowing flexibility for detailed terms to be negotiated in the final documentation.
