Document background
The Buyout Term Sheet is a crucial preliminary document used in merger and acquisition transactions in the Philippines. It serves as a roadmap for the proposed transaction, setting out the fundamental terms and conditions that will form the basis of the final definitive agreements. This document is typically used during the initial stages of a business acquisition, after preliminary discussions but before detailed due diligence and final documentation. The term sheet must comply with Philippine corporate laws, securities regulations, and competition laws, particularly when involving public companies or reaching thresholds requiring regulatory approval. While mostly non-binding (except for specific provisions like confidentiality and exclusivity), it demonstrates serious intent and commits parties to a general transaction framework, making it an essential tool in Philippine M&A practice.
