Document background
An Asset Purchase Term Sheet is a crucial preliminary document used in the early stages of asset acquisition transactions in Australia. It serves as a roadmap for the transaction, documenting the key commercial terms agreed between the parties before proceeding to detailed due diligence and definitive documentation. This document typically includes essential information such as asset description, purchase price, payment structure, conditions precedent, timing, and any special considerations specific to the transaction. While mostly non-binding, it demonstrates commitment to the transaction and helps identify potential issues early in the process. The term sheet is particularly useful in complex transactions where clarity on fundamental terms is needed before incurring significant legal and due diligence costs. Its preparation requires consideration of various Australian legal requirements, including corporations law, property law, and specific industry regulations where applicable.
