M&A Document Checklist

If a company decides that it wants to sell, it must conduct due diligence regarding potential buyers. The process can be lengthy and includes studying financial statements, speaking to employees and touring facilities. In this process, it’s vital for the company to do their best to obtain the most value from the deal. The M&A checklist for documents is a useful tool for companies seeking to make an acquisition.

Term Sheet

A term sheet is also called a memorandum of intent and it outlines the business terms of the transaction. These are legally binding documents, and If there isn’t enough clarity in the form or execution, this could lead to problems later on.

Purchase Agreement and Letter of Intent

The next stage in the M&A process is obtaining the definitive purchase agreement in place. It’s a legal document that defines the details of the deal and is signed by both parties to agree to the M&A process. Then comes https://www.dataroomtech.info/ma-document-categories-and-examples the M&A due diligence process, which entails reviewing financial records and other sensitive information in a safe environment.

HSR filings

According to the Hart-Scott-Rodino Antitrust Improvements Act (HSR Act), M&A transactions that satisfy certain criteria must notify the Federal Trade Commission and Department of Justice of the initial premerger notices prior to closing the transaction. This is to ensure that the merger will not have a negative impact on competition in the relevant markets.