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Term Sheet For Sale Of Business
"I need a Term Sheet for Sale of Business for the acquisition of a Philippine manufacturing company, where we're buying 100% of the shares with an expected closing date in March 2025, including provisions for key employee retention and environmental compliance."
1. Parties: Identification of the seller(s) and buyer(s), including complete legal names and addresses
2. Background: Brief description of the business being sold and the context of the proposed transaction
3. Definitions: Key terms used throughout the term sheet
4. Transaction Structure: Overview of whether the deal is an asset or share sale, and basic structure of the transaction
5. Purchase Price: Proposed consideration and payment terms, including any adjustments or earn-out mechanisms
6. Key Terms: Essential elements of the proposed transaction including timing, conditions precedent, and major obligations
7. Due Diligence: Scope and timeline for due diligence process
8. Exclusivity: Terms of any exclusive negotiating period
9. Confidentiality: Requirements regarding confidential information
10. Costs: Allocation of transaction costs between parties
11. Binding Nature: Clear statement of which provisions are binding and non-binding
12. Governing Law: Specification of Philippine law as governing law and jurisdiction for disputes
13. Execution: Signature blocks and execution requirements
1. Employee Matters: Include when employees will transfer as part of the transaction, covering treatment of existing staff
2. Regulatory Approvals: Include when the transaction requires specific regulatory clearances
3. Intellectual Property: Include when IP assets are a significant part of the transaction
4. Real Estate: Include when the business includes significant real estate assets
5. Environmental Matters: Include for businesses with environmental compliance requirements or risks
6. Tax Structure: Include when specific tax structuring is proposed
7. Financing: Include when buyer requires external financing to complete the transaction
8. Post-Closing Covenants: Include when specific post-closing obligations are contemplated
9. Break Fee: Include when parties agree to break fees for non-completion
1. Business Description Schedule: Detailed description of the business and its key assets
2. Price Calculation Schedule: Detailed methodology for calculating purchase price adjustments
3. Key Assets Schedule: List of major assets included in the transaction
4. Excluded Assets Schedule: List of assets specifically excluded from the transaction
5. Key Contracts Schedule: List of material contracts relevant to the transaction
6. Required Consents Schedule: List of third-party consents needed for the transaction
7. Key Personnel Schedule: List of key employees or management team members
8. Permitted Encumbrances Schedule: List of accepted encumbrances on assets or shares
Authors
Manufacturing
Retail
Technology
Real Estate
Healthcare
Financial Services
Professional Services
Hospitality
Agriculture
Construction
Transportation
Energy
Telecommunications
Media & Entertainment
Education
Legal
Finance
Corporate Development
Mergers & Acquisitions
Executive Leadership
Strategy
Business Development
Compliance
Tax
Corporate Secretariat
Chief Executive Officer
Chief Financial Officer
Managing Director
Corporate Lawyer
General Counsel
Business Development Manager
Investment Banker
Mergers & Acquisitions Director
Corporate Development Manager
Finance Director
Company Secretary
Business Owner
Commercial Director
Legal Counsel
Transaction Advisory Partner
Private Equity Manager
Board Member
Chief Legal Officer
Strategy Director
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