Get Term Sheets For Private Equity Investments

Filling out a term sheet for private equity investments can be a crucial step for your company in securing vital funding. This guide will walk you through the main components of the term sheet, providing clear and supportive instructions to help you understand each section.

Follow the steps to successfully complete your term sheet.

1. Click 'Get Form' button to obtain the form and open it in the editor.
2. Begin by filling out the company information at the top of the form. Include the name of your business and any relevant registration details, ensuring accuracy and completeness.
3. Next, address the convertible preferred stock section. Indicate whether you will offer this to investors and describe the terms, including the conversion process.
4. In the dividends section, specify how and when dividends will accrue, aiming to have dividends only payable at an exit event or in shares rather than cash.
5. Outline the liquidation preference. Clearly define the hierarchy of payments that will be made to the investors in the event of liquidation. Ensure this section accurately reflects your agreement with investors.
6. For participation rights, consider whether to include these for investors. If included, set the conditions under which these rights terminate.
7. Discuss antidilution protection. Specify the type you will offer and ensure you provide details about how this protection will be structured.
8. Include protective provisions that outline any actions that would require investor consent, particularly major transactions.
9. Fill in the registration rights. Clarify demand and piggyback registration rights and their limits to avoid unnecessary burdens on the company.
10. Address drag-along and tag-along rights. Clarify the conditions under which minority shareholders may need to sell alongside majority shareholders.
11. Complete the board seats section by detailing the investor's rights to appoint board members based on their ownership percentage.
12. Once all fields are completed and reviewed for accuracy, save the changes, and consider options to download, print, or share the form as needed.

Take the next step in securing investment by completing your term sheet online today.