An M&A Term Sheet & Letter of Intent (LOI), also known as a Proposal Letter or Deal Sheet, is a non-binding document outlining the basic terms and conditions under which an acquisition will take place. It is crucial as it provides a roadmap for negotiations, decreasing the likelihood of misunderstandings and disputes.
Why You Need an M&A Term Sheet & Letter of Intent (LOI)
Having a well-drafted term sheet can expedite the negotiation process, provide clarity on deal specifics, and reduce the potential for disputes. On the other hand, not having one could lead to misunderstandings, longer negotiations, and even deal failure.
What's Included in an M&A Term Sheet & Letter of Intent (LOI) Template?
Definition of basic terms
Structure of the proposed deal
Confidentiality clause
Exclusivity agreement
Break-up fee, if any
Is It Legally Valid in Every jurisdiction? While our templates are designed by legal professionals, it is crucial to consult with a local attorney to ensure compliance with specific state or country laws applicable to mergers and acquisitions. Download your personalized document