Document background
The Acquisition Term Sheet is a crucial document in the early stages of a merger or acquisition transaction in New Zealand. It is typically prepared after initial discussions between parties but before detailed due diligence and final documentation. The document captures the key commercial and legal terms agreed in principle, providing a framework for the transaction while allowing flexibility for detailed negotiations. While primarily non-binding, certain provisions such as confidentiality, exclusivity, and costs are typically binding. The document must be drafted in accordance with New Zealand law and commercial practice, particularly considering requirements under the Companies Act 1993, Commerce Act 1986, and where applicable, the Overseas Investment Act 2005. It serves as a roadmap for lawyers to prepare detailed transaction documents and for parties to obtain necessary approvals and financing.
