In this competitive and dynamic era, most of the businesses are on constant scoutfor collaborations, synergies and expansions. When two business come together optimises the resources and operations that can be in form merger or acquisition. What is M&A? M&A stands for merger and acquisition. In simple terms mergers are when two business entities decide to combine their operations and form a single entity. Acquisition is one business entity is purchasing by another business entity. What is Role of Term Sheet from M&A Perspective? In M&A transaction term sheet is primary document that contains the key terms of proposed transaction Continue Reading
Term sheet is a roadmap for the proposed merger or acquisition. Term sheet guides the negotiation process by identifying key terms that need to be agreed upon between the parties. It acts as a blueprint to ensure both parties are on the same page before investing significant time and resources into the due diligence, negotiations and legal phases. Negotiation of merger or acquisition generally involves complex and challenging processes due to which usually require, several round of discussions prior reaching consensus arrangement. In order to negotiate and navigate discussions between the prospective acquiring and target parties several revolving discussions around Continue Reading
Term sheet is written document signed between the Parties which sets out the high level, key terms or important terms and conditions of the prospective deal. It summarizes the main points of the agreed terms. Terms of a commercial transaction agreed in principle between parties are reflected in Term sheet. Term Sheet is called by different names like letters of intent, memoranda of understanding, heads of terms, letters of potential interest, protocols and so on. Whatever the name may be but serves same purpose. Purposes of Term Sheet: Recording of key terms in written forum prior finalizing the detailed contractual terms between Continue Reading
