Document background
The Business Acquisition Letter of Intent is a crucial preliminary document in Philippine business transactions, typically used when one company intends to acquire another company or its assets. This document serves as a roadmap for the transaction, outlining key terms while allowing flexibility for detailed negotiations. Under Philippine law, special consideration must be given to foreign ownership restrictions, competition law thresholds, and specific industry regulations. The Letter of Intent helps parties align their expectations early in the process and typically includes provisions for due diligence, purchase price mechanisms, and exclusivity periods. While most provisions are non-binding, certain elements like confidentiality obligations are usually binding. This document is particularly important in the Philippine context where business relationships and preliminary agreements carry significant weight in commercial transactions.
