Document background
The Term Sheet Share Purchase Agreement is a crucial document in German M&A transactions, serving as a preliminary framework that captures the essential commercial and legal terms agreed between parties. It is typically used in the early stages of a transaction, after initial negotiations but before detailed due diligence and final documentation. This document type is particularly important in the German legal context, where it helps establish clear parameters for the transaction while adhering to specific requirements of German corporate and commercial law. The term sheet includes key aspects such as transaction structure, purchase price mechanics, conditions precedent, and fundamental warranties, while leaving room for detailed negotiations in the final Share Purchase Agreement. It is commonly used in both private and public M&A transactions, cross-border deals, and domestic German transactions.
