For parties undertaking M&A projects it is a good idea to agree conditions in advance regarding all confidential information to be shared between them. It is particularly important for the seller that confidential data will not be made public, should the acquisition or merger fail. Signing non-disclosure agreements is therefore a requisite.
Where the parties establish that there is a firm basis for concluding a definitive agreement, they will typically wish to cement their mutual best-efforts obligations and the agreements made in advance, upon entering the negotiation phase, in a declaration or ‘letter’ of intent or in a memorandum of understanding. This puts them under an obligation to each other to strive toward achieving the desired objective, such as a merger or an acquisition. In the case of acquisitions, the conclusion of a declaration of intent is often followed by a due diligence investigation.

Our commercial law specialists would be happy to assist you with drawing up non-disclosure agreements and letters of intent during negotiations for a business takeover.