Document background
An Acquisition Letter of Intent is a crucial preliminary document used in the early stages of merger and acquisition transactions in the Philippines. It serves as a roadmap for the proposed transaction, outlining key terms and conditions while allowing parties to proceed with due diligence and detailed negotiations. The document typically contains both non-binding elements (such as proposed purchase price and structure) and binding elements (such as confidentiality and exclusivity provisions). Under Philippine law, special attention must be paid to compliance with the Revised Corporation Code, Securities Regulation Code, and Philippine Competition Act, particularly for larger transactions or those involving regulated industries. The document helps parties establish clear expectations and timelines while providing a foundation for the eventual definitive agreements.
