M&A Foundations · glossary
A short document recording the outline commercial deal before full contracts are drafted — also called a term sheet, letter of intent (LOI) or memorandum of understanding. Deliberately non-binding on the deal itself, though chosen provisions such as exclusivity and confidentiality are made binding. Chapter 6
Explained in Chapter 6, Term Sheets and Heads of Terms, of M&A Foundations.
At some point early in a deal — after the confidentiality agreement, usually before serious due diligence — the parties write down the outline of their bargain. That short document goes by a remarkable number of names: heads of terms (or “heads of agreement”, or just “the heads”), term sheet, letter of intent (LOI), or memorandum of understanding (MOU). English lawyers tend to say heads of terms; bankers and Americans say term sheet or LOI; MOU turns up in cross-border and…Read Chapter 6, Term Sheets and Heads of Terms →
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Where this term lives
Every chapter of M&A Foundations is free to read, including the full training share purchase agreement. It is part of one complete fictional deal, with every document attached and a test after every chapter. Open M&A Foundations → · All terms A–Z →