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Term Sheet For Sale Of Business Template for Saudi Arabia

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Key Requirements PROMPT example:

Term Sheet For Sale Of Business

"I need a Term Sheet for Sale of Business under Saudi law for the acquisition of a local manufacturing company, with a proposed purchase price of 50 million SAR and expected completion by March 2025; the document should include specific provisions for retaining key technical staff."

Document background
The Term Sheet For Sale of Business is a critical preliminary document used in Saudi Arabian business transactions to establish the fundamental terms and understanding between parties considering a business sale. It serves as a roadmap for the transaction, typically prepared after initial discussions but before detailed due diligence and final documentation. This document outlines key commercial terms, conditions, and timelines while ensuring compliance with Saudi Arabian regulations and Sharia principles. It is particularly important in the Saudi context where business practices must align with both modern commercial requirements and traditional Islamic law. The term sheet usually remains non-binding except for specific provisions like confidentiality and exclusivity, providing flexibility for negotiation while establishing clear expectations for all parties involved.
Suggested Sections

1. Parties: Identification of seller and buyer entities, including registration details and addresses

2. Background: Brief description of the business being sold and the context of the proposed transaction

3. Definitions: Key terms used throughout the term sheet

4. Transaction Structure: Overview of the proposed deal structure, including asset vs. share sale

5. Purchase Price: Proposed consideration and payment terms, including any adjustments or earn-outs

6. Key Assets: Overview of main assets included in the sale

7. Key Conditions Precedent: Essential conditions that must be met before closing

8. Timeline: Proposed schedule for due diligence, documentation, and closing

9. Exclusivity: Terms of exclusive negotiation period

10. Confidentiality: Obligations regarding confidential information

11. Costs: Allocation of transaction costs between parties

12. Governing Law: Specification of Saudi law and Sharia compliance requirements

Optional Sections

1. Employee Matters: Used when employee transfer or retention is a key consideration

2. Regulatory Approvals: Required when the transaction needs specific regulatory clearances

3. Intellectual Property: Important when IP assets are a significant part of the business

4. Environmental Matters: Necessary for businesses with environmental implications or risks

5. Real Estate: Required when property transfers are part of the transaction

6. Foreign Investment Provisions: Needed when the buyer is a foreign entity

7. Shareholder Rights: Relevant in partial stake sales or joint venture arrangements

8. Break Fee: Optional provision for compensation if either party backs out

9. Financing Conditions: Included when the purchase is subject to financing arrangements

Suggested Schedules

1. Business Description Schedule: Detailed description of the business operations and assets

2. Price Calculation Schedule: Detailed methodology for calculating the final purchase price

3. Key Contracts Schedule: List of material contracts to be transferred

4. Required Consents Schedule: List of third-party and regulatory consents needed

5. Key Personnel Schedule: List of important employees and their roles

6. Intellectual Property Schedule: Inventory of IP assets included in the sale

7. Real Estate Schedule: Details of any property assets included in the sale

8. Excluded Assets Schedule: List of assets specifically excluded from the transaction

9. Due Diligence Requirements: Outline of required due diligence items and process

Authors

Alex Denne

Head of Growth (Open Source Law) @ 黑料视频 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions






































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Relevant Industries

Manufacturing

Retail

Technology

Healthcare

Real Estate

Financial Services

Energy

Telecommunications

Professional Services

Construction

Hospitality

Transportation & Logistics

Education

Consumer Goods

Industrial Services

Relevant Teams

Legal

Finance

Corporate Development

Mergers & Acquisitions

Strategy

Executive Leadership

Risk & Compliance

Business Development

Commercial Operations

Corporate Secretariat

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Managing Director

Corporate Development Director

Head of Mergers & Acquisitions

Legal Counsel

Investment Director

Business Development Manager

Finance Director

Company Secretary

Commercial Director

Strategy Director

Risk Manager

Compliance Officer

Board Member

Industries









Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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