Document background
The Business Acquisition Letter of Intent is a crucial preliminary document in Canadian M&A transactions, typically used after initial discussions but before detailed due diligence and definitive agreements. It sets out the fundamental terms and understanding between parties, providing a framework for further negotiations while usually maintaining non-binding status on commercial terms. The document needs to comply with Canadian federal and provincial legislation, including the Competition Act and Securities Act where applicable. It typically includes provisions for purchase price, structure, due diligence, exclusivity, and confidentiality, while considering jurisdiction-specific requirements such as bilingual documentation in Quebec or specific provincial corporate law requirements. This document serves as a vital tool in managing transaction expectations and timelines while protecting both parties' interests during the negotiation phase.
