Document background
The Merger And Acquisition Term Sheet is a crucial preliminary document used in Nigerian corporate transactions to establish the fundamental terms and understanding between parties considering a merger or acquisition. This document is typically prepared during the initial stages of negotiations, after preliminary discussions but before detailed due diligence and definitive agreements. It serves as a framework for further negotiations and documentation, incorporating requirements under Nigerian law including CAMA 2020, Investment and Securities Act, and Federal Competition and Consumer Protection Act requirements. While generally non-binding, except for specific provisions like confidentiality and exclusivity, it demonstrates serious intent and commitment to the transaction process. The term sheet helps align parties' expectations early in the process and provides a structured basis for preparing comprehensive transaction documents.
