Document background
An Acquisition Term Sheet is a crucial preliminary document used in the early stages of M&A transactions in Belgium to outline the fundamental terms and understanding between parties. It serves as a roadmap for the transaction and subsequent detailed documentation, typically prepared after initial commercial agreement but before comprehensive due diligence and definitive agreements. The document, while generally non-binding except for specific provisions, captures key commercial terms including price, structure, conditions, and timeline. Under Belgian law, particular attention must be paid to certain mandatory provisions and regulatory requirements, especially regarding corporate governance, competition law, and sector-specific regulations. The term sheet helps parties align their expectations and forms the basis for negotiating definitive agreements while providing a clear framework for advisors to proceed with detailed due diligence and documentation.
