Document background
The Acquisition Letter of Intent is a crucial preliminary document used in the early stages of merger and acquisition transactions under Swiss law. It serves to memorialize the parties' initial understanding and set the foundation for the proposed transaction. This document typically follows initial discussions and precedes the definitive purchase agreement, outlining key commercial terms such as purchase price, transaction structure, and timeline. While generally non-binding (except for specific provisions like confidentiality and exclusivity), it demonstrates serious intent and commitment to the transaction process. The document must comply with Swiss legal requirements and commercial practices, particularly the Swiss Code of Obligations and relevant M&A regulations. It's commonly used when parties have reached preliminary agreement on key terms but require a formal framework for conducting due diligence and negotiating definitive agreements.
