Document background
The Merger and Acquisition Term Sheet is a crucial preliminary document used in Saudi Arabian M&A transactions to establish the fundamental terms and understanding between parties before proceeding with detailed due diligence and definitive agreements. This document has gained particular significance with the increase in M&A activity driven by Saudi Vision 2030 and economic diversification initiatives. It typically includes essential terms such as transaction structure, pricing, conditions precedent, and exclusivity provisions, while considering Saudi-specific regulatory requirements including CMA regulations, foreign investment restrictions, and Shariah compliance. The term sheet serves as a roadmap for the transaction and, while largely non-binding, certain provisions such as confidentiality and exclusivity are typically binding on the parties.
