Considering selling the operation to an unrelated third party?
(Download this tool as a PDF)
A term sheet will help:
- Ask the right questions and position the answer.
- Facilitate discussions in a constructive manner.
- Detail the conditions of the deal as both parties agree.
- Address the complex issues and generate definitive resolutions.
- Finally, annotate the deal as an outline to draft legal agreements.
Since term sheets are non-binding, your notes don’t need to be in legal terms. When completed, a term sheet will contain summaries and specifications of a pending merger/acquisition. The document may start simple, listing the parties involved, compensation to be paid and the manner of payment.
Potential Buyer Name: ____________________________________ Date: _________________
Binding: Yes_____ No_____
Form of payment: $_________ cash $_________ note/term $_________ retained ownership
Earnout: $_____________ per _______________ (period of time).
Legal structure: _________________________________________________________________ (based on input from respective accountants).
Held by: ______________________
Period of time: _________________
Regulatory approval: ____________________________________________________________
- December 2013