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Term Sheet For Sale Of Business Template for Malaysia

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Key Requirements PROMPT example:

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."

Document background
The Term Sheet For Sale of Business is a crucial preliminary document in Malaysian business transactions, typically used when parties have reached initial agreement on key commercial terms but before proceeding to detailed due diligence and final documentation. This document serves as a roadmap for the transaction, incorporating essential elements required under Malaysian law while reflecting local business practices and regulatory requirements. It's particularly important in the Malaysian context where business sales often involve multiple stakeholders and regulatory considerations under the Companies Act 2016 and other relevant legislation. The term sheet helps parties align their expectations early in the process, reducing the risk of misunderstandings during later negotiations and providing a clear framework for professional advisors to prepare detailed transaction documents.
Suggested Sections

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

Optional Sections

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

Suggested Schedules

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

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions



























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Relevant Industries

Manufacturing

Technology

Retail

Professional Services

Healthcare

Real Estate

Financial Services

Construction

Hospitality

Transportation

Energy

Agriculture

Education

Media and Entertainment

Relevant Teams

Legal

Finance

Corporate Development

Strategy

Mergers & Acquisitions

Risk Management

Corporate Secretariat

Tax

Executive Leadership

Business Development

Relevant Roles

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

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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