Document background
A Business Acquisition Letter of Intent is a crucial preliminary document used in the early stages of merger and acquisition transactions under Austrian law. It serves to memorialize the parties' initial understanding and set the stage for more detailed negotiations and due diligence. The document typically includes both non-binding provisions (such as proposed purchase price and transaction structure) and binding elements (like confidentiality and exclusivity). Under Austrian jurisdiction, particular attention must be paid to compliance with the ABGB (Austrian Civil Code) and UGB (Commercial Code), especially regarding formation of preliminary agreements and pre-contractual obligations. The document is particularly important in cross-border transactions involving Austrian entities, as it helps align expectations and legal requirements across different jurisdictions while providing a roadmap for the transaction process.
