Term Sheet Template Share Purchase Agreement

Buyers sometimes prefer to structure corporate purchases as asset purchase transactions rather than stock purchase transactions. In the event of an asset purchase, a buyer has the option to choose the assets and liabilities they wish to acquire from the selling entity. This term sheet assumes that the transaction will be structured in the sale of shares (as is most often the expression). It should not be used in connection with the acquisition of the business and assets of a target company. This roadmap is not legally binding (with the exception of the confidentiality obligations of Part B); it sets only the terms agreed in the context of the acquisition. Seller also represents that the shares have not been registered under Section 5 of the Securities Act of 1933 and therefore may not be resold by Buyer in the absence of an effective registration statement or in a transaction excluded from the registration requirements of the law. 1.3 Target Purchase Price. The target purchase price for most of all of the seller`s assets is approximately $[DOLLAR] plus the value of an Earn-out described below, with a potential value (based on the seller`s financial forecasts) of up to $[AMOUNT IN DOLLARS]. The target purchase price reflects an evaluation of seller activity based on an expected adjusted base EBITDA of $[DOLLAR AMOUNT] and subject to due diligence and adjustments described below. This proposed purchase price is subject to the conclusion of our due diligence audit and assumes that the seller would be debt-free at the time of the conclusion :i); (ii) have no liabilities outside the normal course; and (iii) have a deposit asset and cash that must be agreed in the final documentation, but this would be sufficient to support the operation of the seller for at least [NUMBER] days after closing. 20.

If any provision, agreement, condition or provision of this Agreement is held by a court of competent jurisdiction to be void, void or unenforceable, the parties intend that such provision shall be limited by the court only to the extent deemed necessary by that court to make the provision reasonable and enforceable, and that the remainder of the provisions of this Agreement shall not be affected in any way. As a result, it is affected or invalidated. 2.2 Exemption. Upon conclusion, Buyer expects Seller`s shareholder to exempt Buyer and related businesses from breaches of insurance, warranties and insurance contained in the final transaction documents, on reasonable terms, and that the maximum amount of such compensation in the event of non-compliance with operational warranties and guarantees [PERCENTAGE] % of the total purchase price. 2.3 Fiduciary Service. In order to ensure that Buyer has the means to satisfy any claim for compensation after the conclusion of the Transaction, Buyer requires that [20] % of the total Purchase Price be held in trust until the second anniversary of the Transaction. Below is an example of a company acquisition term sheetMergers Acquisitions M&A ProcessThis guide guides you through all the steps of the M&A process. In this guide, we describe the acquisition process from start to finish, the different types of acquisitions (strategic and financial purchases), the importance of synergies and transaction costs (with an illustrative example): often sellers oppose any earn-out or any other structure that moves the purchase price to the post-closing. In addition to creating uncertainty, payments after closing can pose logistical challenges for sellers.

A lawyer may discuss options for the timing and structure of purchase price payments in specific circumstances. 3.2 Employment Contracts. As a precondition for closing the transaction, buyer requires certain employees and seller`s management (including the Chief Executive Officer) to perform employment contracts (which contain non-compete and non-debauchery clauses for employees and customers), as the buyer deems appropriate. . . .