Document background
The Acquisition Term Sheet is a crucial preliminary document used in the early stages of M&A transactions under Swiss law. It serves as a roadmap for the transaction by documenting the parties' preliminary understanding of key commercial and legal terms. While primarily non-binding, it creates a framework for negotiating definitive agreements and conducting due diligence. The document typically follows Swiss market practice and legal requirements, particularly those established by the Swiss Code of Obligations and Swiss M&A regulations. It is commonly used when parties have reached preliminary agreement on key terms but before committing significant resources to detailed due diligence and definitive documentation. The term sheet helps align expectations, identify potential deal-breakers early, and streamline the negotiation process for the final transaction documents.
