Document background
The Term Sheet Share Purchase Agreement is a crucial document in Belgian M&A transactions, typically used in the early stages of negotiations between parties contemplating a share purchase transaction. It serves as a roadmap for the transaction, outlining principal terms while usually remaining non-binding except for specific provisions such as confidentiality and exclusivity. This document is particularly important in the Belgian legal context, where it helps parties align their expectations and identify key issues early in the process. The term sheet typically precedes the due diligence phase and the drafting of the final share purchase agreement, helping to streamline negotiations and reduce transaction costs by addressing potential deal-breakers early. It reflects Belgian market practice and legal requirements, including considerations under the Belgian Companies and Associations Code and relevant corporate regulations.
