A Term Sheet - Sale of Business sets out the general idea of the agreement before you proceed to the full agreement. This document is intended to be used as a pre cursor agreement to a Business Sale Agreement. Term Sheet - Sale of Business gives you an overview of the potential agreement in purchasing a business or selling your business. This overview is helpful in conducting your due diligence, and is useful in negotiating a better deal for both parties. It makes it easier for both parties to later reach an agreement, and hopefully lead to a sale of the business.  

Use this Term Sheet - Sale of Business if:

• You are looking to purchase a business, and would like to set out some general terms as an overview and/or for negotiation.

What does the Term Sheet - Sale of Business cover?

• The parties to the agreement;
• The assets included in the purchase price;
• The assets excluded in the purchase price;
• The liabilities of both parties;
• The completion date;
• The purchase price;
• The payment terms;
• Any conditions precedent, warranties, costs included;
• Confidentiality clause; and
• Option to be binding.

Other names for Term Sheet - Sale of Business include:

• Sale of Business Pre-Nup; and
• Heads of Agreement to Sale of Business.

Other documents you may need:

• Term Sheet – Investor
• Business Sale Agreement
• Heads of Agreement