Term Sheet
Content
Definition
A Term Sheet is a non-binding document outlining the preliminary terms and conditions of an investment, serving as the basis for further negotiation and due diligence before finalizing the investment agreement.
Usage and Context
A term sheet outlines early investment terms before final talks.
Frequently asked questions
- What is a non-binding term sheet? A non-binding term sheet lays out early investment terms before final talks.
- What is in a term sheet? A term sheet includes the preliminary terms and conditions of an investment or financing deal, serving as a basis for negotiation before the final agreement.
- What is the term sheet for due diligence? The term sheet for due diligence is a non-binding paper that outlines key terms and conditions of a proposed investment, used for further negotiation and checking.
Benefits
A term sheet outlines expectations early, reducing misunderstandings during negotiations.
Conclusion
A term sheet establishes clear expectations early on, reducing negotiation issues.
