Commercial negotiations are long and costly
Negotiating a large equity raise can be very complicated and take a long time. The lawyers get involved and argue about a lot of terms which you may barely understand, meanwhile the respective parties may change their position in relation to key terms of the deal.
A term sheet can help with this process by simply setting out just the main commercial terms of the deal, before the lawyers will get stuck into the more complex and comprehensive terms of the shareholders agreement and subscription deed. However, if you get things wrong in the term sheet, you may be locked into poor investment terms when it’s time to finalise the deal.
Minimise the risk of misunderstanding
Negotiations that extend for long periods of time can hinder your business’ growth plans (whilst also costing a small fortune). Without a qualified lawyer carefully pinpointing where there are discrepancies between parties, and where there is wiggle-room for negotiation, you run the risk of sitting idle due to drawn-out misunderstandings and tense negotiations. You could also risk agreeing to unfair terms in relation to warranties, control of the company, or payment milestones. Even worse, the deal could possibly collapse and you may be liable for the legal and admin fees of the investor.
Let us do the hard negotiation for you
We are experts in drafting concise and clear term sheets that protect your interest. We have the experience to know what to focus on, and we have the tenacity to do the negotiating for you. We understand that when it comes to your commercial arrangements, you want the most bang for your buck (and no surprises). A proper term sheet in place will ensure that you will get the best deal possible, and reduce the possibility of the other party pulling out of the deal or attempting to change it.
Frequently asked questions
Can I do this myself?
Are your documents automatically generated?
Is the price a fixed-fee?
Can I speak or meet with a lawyer, and will this cost extra?
What if I need this urgently?
This package doesn’t suit me, can I create my own one?
What if the document or advice I need isn’t on the website?
- Free consultation
- Done for you tailored legal documents to suit your needs
- Initial drafting and review + one round of amendments
- Practical legal advice
- Fast turnaround times (5-7 days)
Looking for practical legal advice?
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