Document background
The Acquisition Term Sheet is a crucial preliminary document used in merger and acquisition transactions in the Philippines, typically prepared after initial discussions between parties but before detailed due diligence and definitive agreements. It serves as a roadmap for the transaction, outlining key commercial terms, conditions, and timelines while considering Philippine regulatory requirements, including those under the Corporation Code, Securities Regulation Code, and Philippine Competition Act. This document helps parties align their expectations early in the process and provides a structured framework for negotiating the final transaction documents. While mostly non-binding, certain provisions like confidentiality and exclusivity are typically made binding. The term sheet must be drafted with careful consideration of Philippine foreign investment restrictions, competition law thresholds, and industry-specific regulations that may affect the final transaction.
