Document background
The Buyout Term Sheet is a crucial preliminary document used in merger and acquisition transactions under Hong Kong law. It serves as a roadmap for the proposed transaction, outlining key commercial and legal terms that will form the basis of the definitive agreements. While predominantly non-binding, it typically contains certain binding provisions such as confidentiality, exclusivity, and governing law clauses. The document is especially relevant in Hong Kong's dynamic business environment, where it must comply with local corporate and securities regulations while often accommodating international business practices. It's commonly used in both private and public company acquisitions, reflecting the initial understanding between parties and setting expectations for the transaction structure, timing, and key conditions.
