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Asset Purchase Agreement Term Sheet
"I need an Asset Purchase Agreement Term Sheet for the purchase of manufacturing equipment and associated IP rights from an Australian company, with completion targeted for March 2025 and including provisions for employee transfer and transitional services."
1. Parties: Identification of the seller and purchaser, including full legal names, ACN/ABN, and registered addresses
2. Background: Context of the transaction, brief description of the business/assets, and purpose of the term sheet
3. Definitions: Key terms used throughout the term sheet
4. Assets to be Purchased: Detailed description of assets included in the sale
5. Purchase Price: Proposed purchase price, payment structure, and timing
6. Key Terms: Essential commercial terms including timing, conditions precedent, and completion requirements
7. Due Diligence: Scope, timeline, and process for due diligence investigation
8. Exclusivity: Terms of exclusive negotiation period
9. Confidentiality: Obligations regarding confidential information
10. Costs: Allocation of transaction costs between parties
11. Binding Nature: Clear statement of which terms are binding and non-binding
12. Timeline: Key dates and proposed completion timeline
13. Governing Law: Jurisdiction and applicable law
1. Employee Matters: Terms regarding transfer or retention of employees - include when assets include ongoing business operations
2. Intellectual Property: Special provisions for IP transfer and protection - include when intellectual property is a significant component
3. Environmental Matters: Environmental compliance and liability - include for industrial assets or real property
4. Regulatory Approvals: Required regulatory clearances - include when transaction requires specific regulatory approval
5. Warranties and Indemnities: Key warranties to be included in final agreement - include for complex transactions
6. Working Capital Adjustment: Mechanism for adjusting purchase price based on working capital - include for operating business assets
7. Third Party Consents: Required third party approvals - include when assets involve significant contracts or licenses
8. Transitional Services: Post-completion support services - include when operational continuity is required
1. Asset Schedule: Detailed listing of all assets included in the sale
2. Excluded Assets Schedule: List of specifically excluded assets
3. Purchase Price Allocation: Breakdown of purchase price across asset categories
4. Key Contracts: List of material contracts included in the sale
5. Required Consents: List of third party and regulatory approvals needed
6. Due Diligence Checklist: Preliminary list of required due diligence items
7. Key Employees: List of critical employees and proposed arrangements
8. Timeline Schedule: Detailed timeline with key milestones and deadlines
Authors
Manufacturing
Real Estate
Mining
Agriculture
Technology
Healthcare
Retail
Hospitality
Construction
Transport and Logistics
Energy and Resources
Professional Services
Media and Entertainment
Financial Services
Education
Legal
Finance
Corporate Development
Mergers & Acquisitions
Risk Management
Operations
Strategy
Tax
Compliance
Business Development
Asset Management
Property Management
Chief Executive Officer
Chief Financial Officer
General Counsel
Legal Counsel
Corporate Lawyer
Commercial Director
Business Development Manager
Investment Manager
Asset Manager
Finance Director
Company Secretary
Transaction Manager
Due Diligence Manager
Mergers & Acquisitions Director
Risk Manager
Operations Director
Property Manager
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