Search
Affordable legal document templates written by experienced practising lawyers trusted by UK businesses and beyond
- Guidance notes included
- No hidden extras
- Easily customisable
Create your document in 3 Easy Steps
- Download
- Customise
- Share & Sign
Term Sheet
The initial stage in an investment transaction is often for the company, its existing shareholders and the investor to agree a term sheet, outlining the key terms of the investment.
Choose from a term sheet for an investment for either ordinary shares or preferred shares.
why our
customers value us
I find what I need easily on the Paperrock website and I've been impressed by the comprehensive guidance. The documents consistently match the quality I have seen from in-house and external law firms in my previous roles. I'd highly recommend.
Gavin, MD | SC Transformation
Why use a Term Sheet?
The initial stage in an investment transaction is often for the company, its existing shareholders and the investor to agree a term sheet, outlining the key terms of the investment.
While these terms are typically not legally binding (aside from specific areas such as confidentiality and possibly exclusivity), they serve as the basis for the detailed terms in the long form investment documents. Agreeing matters at this stage helps identify particularly contentious issues and should save time and expense in the long run.
Other preliminary documents for an investment transaction
Alongside the term sheet, the company being considered for investment should also require a confidentiality agreement (or NDA) with the potential investor. This will safeguard the confidentiality of the company’s proprietary information which an investor will need access to for the investor’s due diligence and decision-making.
An investor may also require an exclusivity agreement, under which the company agrees not to engage in discussions with other potential investors for a specified period. This allows the investor to invest time and resources in its due diligence and negotiations, knowing that the company isn’t simultaneously considering offers from competing investors.
