Document background
A Memorandum of Understanding for M&A transactions is commonly used in Singapore when parties wish to document their initial understanding and framework for a potential merger or acquisition. This document type serves as a roadmap for the transaction, outlining key terms, conditions, and the process for due diligence while maintaining flexibility for negotiations. Under Singapore law, an MOU typically includes both binding and non-binding provisions, with confidentiality and exclusivity often being legally binding. The document is particularly useful in complex transactions where detailed due diligence is required and where parties need to establish clear parameters for their negotiations before proceeding to definitive agreements.
