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Glossary

Term Sheet

A document used to outline the key terms of the purchase or sale of a business.

See Also

Letter of intent.

Tips

After a term sheet has been signed, it serves as a guide for attorneys in the preparation of a letter of intent or purchase agreement. The purpose of a term sheet is to provide direction to the parties to draft the final agreements, but it is not necessarily binding on the parties. Some parties also use the phrases term sheet and letter of intent interchangeably.

Related Resources

M&A Basics | The Term Sheet

Related Terms

Tax Clearance

A certificate issued by a government agency stating that no tax is due. See Also Successor’s liability. Tips Buyers often request a tax clearance certificate before closing on the purchase...

Teaser

A short summary of a business that does not normally reveal the company’s identity, and is shown to prospective buyers before a non-disclosure agreement is signed. See Also Confidential information...

Third-Party Appraisal

An appraisal performed by an independent party that does not have a vested interest in the transaction. Tips Business brokers often claim that third-party appraisals are unbiased; however, business brokers...

Trade Dress

A form of intellectual property that generally refers to characteristics of the visual appearance of a product or its packaging, or even the design of a building, that signifies the...

Trade Secret / Trade Secrets

Any confidential business information that provides an enterprise a competitive edge. See Also Intellectual property. Tips Trade secrets encompass manufacturing or industrial secrets and commercial secrets. Trade secrets include sales...

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