Why Use a Term Sheet

We all know that Shakespeare quote, "The first thing we do, let's kill all the lawyers!" and we may have various opinion on such a radical proposition. But, one thing is for sure, while lawyers bring a technical expertise that can keep you out of trouble, that same technical expertise of all things legal than can sometimes get in the way of doing a deal that would otherwise be simple and straightforward. This is why when Cathedral is helping a small business with M&A type activities, we begin with a term sheet to establish basic parameters of the agreement before having it executed by legal counsel.

The idea behind a term sheet is that it brings both parties to sit at a table and get to the heart of the matter and agree upon the most essential pieces of a deal before having to face the legal scrutiny of a lawyer. While we at Cathedral Consulting Group facilitate the creation of many term sheets for many different types of deals, we always strongly recommend having a lawyer execute the term sheet as a binding legal document before it is signed.

For more information on using a term sheet, contact us at 917-658-8337 or at mfitzgerald@cathedralconsulting.com .