Term Sheet Preparation Services
A Term Sheet is a crucial document that outlines the key terms and conditions of a potential investment or business agreement. It serves as the foundation for drafting legally binding contracts such as Shareholder Agreements or Investment Agreements.
Our expert team at Advisorate ensures that your Term Sheet is strategically crafted to protect your interests and streamline the investment process.
Why is a Term Sheet Important?
A well-drafted Term Sheet provides numerous benefits for all parties involved:
- Defines the key financial and legal terms of an investment or transaction.
- Reduces the risk of misunderstandings between parties.
- Serves as a roadmap for drafting binding agreements.
- Helps in negotiation by clarifying expectations upfront.
Key Elements of a Term Sheet
- Investment Amount & Valuation – Specifies the funding amount and company valuation.
- Equity Ownership & Share Structure – Defines how ownership is distributed among investors and existing shareholders.
- Rights & Obligations of Investors – Details rights such as voting rights, board seats, and liquidation preferences.
- Exit Strategy & Lock-in Period – Outlines provisions for investor exit, including IPO, buyback, or secondary sale.
- Dividends & Profit Distribution – Clarifies how profits and dividends will be shared among shareholders.
- Control & Management Rights – Specifies decision-making authority, board composition, and reserved matters.
- Confidentiality & Exclusivity – Includes clauses restricting parties from negotiating with others for a specific period.
- Legal Compliance & Governing Laws – Ensures adherence to regulatory frameworks such as Companies Act, FEMA, SEBI guidelines, etc.
Our Term Sheet Drafting Services
At Advisorate, we specialize in preparing customized Term Sheets tailored to your business needs. Our services include:
Consultation & Strategy Planning
Understanding your business structure and investment requirements to develop a targeted approach.
Drafting & Review
Creating a precise and legally sound Term Sheet aligned with industry best practices and your specific goals.
Negotiation Support
Assisting in negotiations with investors to secure favorable terms that protect your interests.
Regulatory Compliance
Ensuring adherence to corporate and investment laws in India, minimizing legal risks in future transactions.
Who Needs a Term Sheet?
- Startups & Founders seeking funding from angel investors, venture capitalists, or private equity firms.
- Investors looking to secure their rights before making an investment.
- Corporate Entities entering into joint ventures, mergers, or strategic alliances.
Why Choose Us for Term Sheet Preparation
- Industry Experts – Over 7 years of experience in corporate law and investment structuring.
- Customized Solutions – Tailored Term Sheets based on your specific needs.
- Compliance-Driven Approach – Ensuring regulatory adherence to avoid future legal issues.
- Transparent & Efficient Process – Quick turnaround time with detailed explanations.
Frequently Asked Questions
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