Document background
The MOU for Investment is commonly used in the United States as an initial step in investment negotiations, serving as a bridge between preliminary discussions and final binding agreements. It provides a structured framework for parties to document their intentions and key commercial terms while maintaining flexibility for detailed negotiations. This document typically includes information about the proposed investment structure, valuation considerations, due diligence requirements, and timeline for completion. While not fully binding, certain provisions such as confidentiality and exclusivity may be made explicitly binding. The MOU helps establish clear expectations and demonstrates serious intent while allowing parties to proceed with more detailed investigations and negotiations.
