Term Sheets

“When I use a word,” Humpty Dumpty said, “it means just what I choose it to mean-neither more nor less.”

Sometimes in business negotiations points are seemingly agreed. However, only later do some people try to explain that they meant something else or nothing at all. Therefore, a verbal agreement is worth the paper it is written on! A term sheet is a summary of the key terms that have been agreed between the parties on a contemplated transaction. A term sheet will help the parties and their advisors to clarify the key commercial terms of a transaction in an uncluttered format.

Term sheets are an essential part of commercial banking and finance transactions. They provide the “road map” to advisors and the parties. A well prepared term sheet is invaluable to a lawyer and will assist a lawyer to draft transaction documentation that reflects the commercial understanding of the parties. In short, a well prepared term sheet should reduce the time it takes to complete a transaction.