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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."
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
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
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
Manufacturing
Retail
Technology
Healthcare
Real Estate
Financial Services
Energy
Telecommunications
Professional Services
Construction
Hospitality
Transportation & Logistics
Education
Consumer Goods
Industrial Services
Legal
Finance
Corporate Development
Mergers & Acquisitions
Strategy
Executive Leadership
Risk & Compliance
Business Development
Commercial Operations
Corporate Secretariat
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
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