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Term Sheet For Sale Of Business
"I need a Term Sheet for Sale of Business for my manufacturing company in Penang, Malaysia, which includes specific provisions for intellectual property rights transfer and employee retention, with completion targeted for March 2025."
1. Parties: Identification of the seller(s) and buyer(s), including full legal names and registration details
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 the proposed transaction structure (asset sale vs. share sale)
5. Purchase Price: Details of the consideration, including amount, payment structure, and any adjustments
6. Payment Terms: Timeline and method of payment, including any deposit requirements
7. Key Assets/Shares: Description of the main assets or shares being transferred
8. Conditions Precedent: Key conditions that must be satisfied before proceeding to final documentation
9. Due Diligence: Scope and timeline for due diligence process
10. Exclusivity: Period during which seller cannot negotiate with other parties
11. Confidentiality: Obligations regarding confidential information
12. Timeline: Key dates and milestones for the transaction
13. Binding Effect: Clarification of which terms are binding and non-binding
1. Employee Matters: Used when the transaction involves significant employee transfers or considerations
2. Regulatory Approvals: Required when the transaction needs specific regulatory clearances
3. Third Party Consents: Included when key contracts or licenses require third party approval for transfer
4. Post-Completion Covenants: Used when there are specific post-sale obligations like non-compete clauses
5. Break Fee: Included when parties want to specify compensation for transaction termination
6. Earn-out Provisions: Used when part of the purchase price is contingent on future performance
7. Interim Operation Covenants: Required for longer transactions where business operation parameters need to be set
8. Tax Structure: Included when specific tax considerations need to be addressed
1. Business Description Schedule: Detailed description of the business, including key assets, contracts, and operations
2. Price Calculation Schedule: Detailed methodology for calculating purchase price adjustments
3. Key Contracts Schedule: List of material contracts that are critical to the transaction
4. Excluded Assets/Liabilities: List of specific assets or liabilities excluded from the transaction
5. Required Consents: List of third-party and regulatory approvals needed
6. Transaction Timeline: Detailed timeline with specific milestones and deadlines
Authors
Manufacturing
Technology
Retail
Professional Services
Healthcare
Real Estate
Financial Services
Construction
Hospitality
Transportation
Energy
Agriculture
Education
Media and Entertainment
Legal
Finance
Corporate Development
Strategy
Mergers & Acquisitions
Risk Management
Corporate Secretariat
Tax
Executive Leadership
Business Development
Chief Executive Officer
Chief Financial Officer
Managing Director
Corporate Development Director
Business Development Manager
Legal Counsel
Company Secretary
Investment Banker
Financial Controller
Mergers & Acquisitions Director
Strategy Director
Risk Manager
Commercial Director
Board Member
Transaction Advisory Partner
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