Document background
The Letter Of Intent Share Purchase Agreement is a crucial preliminary document in German M&A transactions, typically used when parties have reached a general understanding but before conducting detailed due diligence. It serves as a roadmap for the transaction while providing certain binding commitments, particularly regarding confidentiality and exclusivity. Under German law, careful consideration must be given to which provisions are intended to be binding, as this can have significant legal implications. The document is particularly important in cross-border transactions involving German entities, as it helps align expectations and legal requirements across different jurisdictions. It typically precedes the more detailed Share Purchase Agreement and helps structure the due diligence process, while also potentially securing exclusivity for the potential buyer during negotiations.
