Document background
A Letter Of Intent Merger document is a crucial preliminary step in merger transactions under Austrian law, typically used when two or more companies have agreed in principle to merge and need to formalize their initial understanding. This document serves multiple purposes: it outlines the basic terms of the proposed merger, establishes a framework for due diligence, and includes binding provisions for confidentiality and exclusivity. While predominantly non-binding, it signals serious intent and commits parties to good faith negotiations. The document must comply with Austrian corporate law requirements and often includes considerations for EU regulations when applicable. It's particularly important for establishing clear parameters for the transaction before parties invest significant resources in detailed due diligence and definitive agreements.
