Document background
The Business Acquisition Letter of Intent is a crucial preliminary document in Swiss M&A transactions, typically used when a potential buyer has identified a target company and wishes to formalize their initial understanding before proceeding with detailed due diligence and definitive agreements. This document, while generally non-binding, establishes the fundamental parameters of the proposed transaction, including purchase price ranges, payment terms, exclusivity periods, and confidentiality obligations. Under Swiss law, particularly the Swiss Code of Obligations and Swiss Merger Act, the LOI serves as a roadmap for the transaction, helping parties align their expectations and allocate resources efficiently. It's particularly valuable in complex cross-border transactions where Swiss entities are involved, as it can address jurisdiction-specific requirements and practices while providing a clear framework for the acquisition process.
