Document background
The Asset Purchase Agreement Term Sheet is a crucial preliminary document used in Irish business transactions when parties are contemplating the purchase and sale of specific assets rather than shares in a company. It is typically prepared after initial commercial discussions but before detailed due diligence and definitive documentation. The document captures the key commercial and legal terms agreed in principle between the parties, including asset description, pricing, payment structure, conditions precedent, and timeline. While generally non-binding, except for specific provisions like confidentiality and exclusivity, it serves as a foundation for negotiating the final Asset Purchase Agreement and helps ensure all parties have a clear, common understanding of the transaction structure. The term sheet is particularly valuable in complex asset acquisitions where clarity on fundamental terms is essential before incurring significant transaction costs.
