Document background
A Term Sheet For Acquisition Of Shares is a crucial preliminary document used in Australian M&A transactions to establish the framework for share purchase negotiations. It is typically prepared after initial commercial discussions but before detailed due diligence and definitive documentation. The document captures key commercial terms, conditions, and timing requirements for the proposed transaction, providing a roadmap for lawyers to draft the final share purchase agreement. While predominantly non-binding, it often includes certain binding provisions such as confidentiality, exclusivity, and costs. The term sheet must comply with Australian corporate law requirements, including the Corporations Act 2001 (Cth), and may need to address FIRB approval requirements for foreign investors. It serves as a critical tool for aligning parties' expectations and expediting the negotiation of definitive transaction documents.
