M&A Document Checklist

When a company decides to sell, they must to conduct their due diligence on the buyer they are considering. The process can be long and involves reviewing financial statements, speaking to employees and touring facilities. During this process, it’s essential that the company does their best to obtain the most value from the sale. The M&A checklist for documents is a great tool for companies seeking to negotiate a deal.

Term Sheet

A term sheet, also referred to as a letter of intent or memorandum understanding, is the earliest step in an M&A transaction. It defines the commercial terms of the deal. These are legally binding documents and if they’re not written or clearly executed, it could cause problems in the future.

Purchase Agreement and Letter of Intent

The next stage in the M&A process is to get the definitive purchase agreement in place. The contract sets out the conditions of the M&A agreement and is signed by the two parties to commit to it. The M&A procedure is followed by due diligence, which involves looking over financial records in an environment that is secure.

HSR filings

In accordance with the Hart-Scott-Rodino Antitrust Improvements Act (HSR Act), M&A transactions that satisfy certain requirements must inform the Federal Trade Commission and Department of Justice of their initial premerger notifications before closing the transaction. This is to ensure that the merger will not have an adverse impact on competition in any relevant markets.

https://www.dataroomtech.info/ma-document-categories-and-examples