Document background
A Letter Of Intent Merger is a crucial preliminary document in the merger and acquisition process under Indian corporate law. It is typically used when two companies have reached a preliminary understanding regarding a potential merger and need to formalize their intentions before proceeding with detailed due diligence and definitive agreements. The document outlines key commercial terms, valuation parameters, exclusivity arrangements, and the proposed transaction structure while maintaining flexibility for future negotiations. While primarily non-binding, it often includes specific binding provisions regarding confidentiality and exclusivity. The document must consider various Indian legal frameworks including the Companies Act 2013, Competition Act 2002, and relevant sector-specific regulations. It serves as a roadmap for the transaction and demonstrates serious intent from both parties while protecting their interests during the negotiation phase.
