What is a Term Sheet?
The list of terms is a principle submitted by private equity investors to the target company for the purpose of final investment transactions under the premise of investment intentions. It is made in principle for key elements such as corporate valuation, transaction structure, investor interest protection, time course, and expenses. Terms stated.
Terms list
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- Chinese name
- Terms list
- Foreign name
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- Nature
- noun
- Category
- Checklist
- The list of terms is a principle submitted by private equity investors to the target company for the purpose of final investment transactions under the premise of investment intentions. It is made in principle for key elements such as corporate valuation, transaction structure, investor interest protection, time course, and expenses. Terms stated.
- definition
- In fact, the term list is not a final investment agreement, but is used as a guide for final investment transactions, so its legal binding is not strong. However, as the basis for negotiations and investment agreements between the two parties, the term sheet contains most of the rights of private equity investors and their obligations to target companies and their initial shareholders, as well as other key content related to investment and financing. In practice, the list of investment terms, in addition to stipulating the investor's valuation of the invested enterprise, the planned investment amount, the proportion of holdings, and investment tools, should also include the main obligations that the invested enterprise should assume and the main rights required by the investor. And the prerequisites for an investment transaction. Generally, a formal investment agreement [1] will contain the content of a list of terms. Therefore, its importance is self-evident.