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Asset Purchase Agreement Term Sheet Template for Australia

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Key Requirements PROMPT example:

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."

Document background
The Asset Purchase Agreement Term Sheet is a crucial preliminary document used in Australian business transactions to establish the framework for asset purchases. It is typically employed during the initial stages of negotiation when parties have reached preliminary agreement on key commercial terms but before drafting the full definitive agreement. This document outlines essential elements such as asset description, purchase price, payment structure, conditions precedent, due diligence requirements, and completion mechanics. While primarily non-binding (except for specific provisions like confidentiality and exclusivity), it serves as a roadmap for the transaction and subsequent detailed documentation. The term sheet must comply with Australian corporate and commercial law requirements and is particularly valuable in complex transactions where clarity on key terms is needed before proceeding with detailed due diligence and final documentation.
Suggested Sections

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

Optional Sections

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

Suggested Schedules

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

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions








































Clauses








































Relevant Industries

Manufacturing

Real Estate

Mining

Agriculture

Technology

Healthcare

Retail

Hospitality

Construction

Transport and Logistics

Energy and Resources

Professional Services

Media and Entertainment

Financial Services

Education

Relevant Teams

Legal

Finance

Corporate Development

Mergers & Acquisitions

Risk Management

Operations

Strategy

Tax

Compliance

Business Development

Asset Management

Property Management

Relevant Roles

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

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,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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