Document background
The Memorandum of Understanding Share Purchase is a crucial preliminary document used in German corporate transactions to establish the framework for a potential share acquisition. It serves as a stepping stone between initial discussions and the final share purchase agreement, documenting the parties' intentions and key commercial terms while allowing flexibility for detailed negotiations. This document is particularly important in the German legal context, where it helps structure the transaction process and ensures compliance with local corporate law requirements. While mostly non-binding, it typically includes certain binding elements such as confidentiality and exclusivity provisions. The MoU is commonly used in both private and public company transactions, though specific requirements may vary based on the target company's legal form (e.g., GmbH or AG) and the transaction's size.
