Asset Purchase Term Sheet for Austria

Asset Purchase Term Sheet Template for Austria

A non-binding document governed by Austrian law that outlines the principal terms and conditions for a proposed asset purchase transaction. This document serves as a framework for negotiating and drafting the definitive asset purchase agreement, incorporating key Austrian legal requirements and commercial practices. It addresses essential elements such as asset identification, purchase price, conditions precedent, and timeline, while considering specific Austrian regulatory requirements, tax implications, and transfer regulations. The term sheet helps parties align their expectations and forms the basis for more detailed due diligence and final documentation.

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What is a Asset Purchase Term Sheet?

An Asset Purchase Term Sheet is a preliminary document used in Austrian business transactions to memorialize the key commercial and legal terms of a proposed asset acquisition. It serves as a roadmap for the transaction and subsequent documentation, typically presented after initial discussions but before detailed due diligence and definitive agreements. While mostly non-binding (except for specific provisions like confidentiality and exclusivity), it represents a crucial step in Austrian transactions, helping parties align on fundamental terms and structure. The document addresses Austrian-specific legal considerations, including property transfer requirements, tax implications, and regulatory approvals. It's particularly important in the Austrian context where it can help streamline the subsequent notarization and registration requirements often required in asset transfers.

What sections should be included in a Asset Purchase Term Sheet?

1. Parties: Identification of the seller and purchaser, including full legal names and registration details

2. Background: Brief context of the proposed transaction and the assets being purchased

3. Definitions: Key terms used throughout the term sheet

4. Transaction Structure: Overview of the proposed asset purchase structure

5. Purchase Price: Proposed consideration and payment terms, including any adjustments

6. Assets to be Acquired: High-level description of the assets included in the transaction

7. Excluded Assets: Clear identification of assets explicitly excluded from the transaction

8. Key Conditions Precedent: Essential conditions that must be met before closing

9. Timeline: Proposed schedule for due diligence, documentation, and closing

10. Confidentiality: Binding provisions regarding the confidentiality of negotiations and information

11. Exclusivity: Any exclusive negotiation periods and terms

12. Costs: Allocation of transaction costs between parties

13. Governing Law: Specification of Austrian law as governing law

14. Non-Binding Nature: Clear statement of which provisions are binding and non-binding

What sections are optional to include in a Asset Purchase Term Sheet?

1. Employee Matters: Include when the transaction involves transfer of employees

2. Regulatory Approvals: Include when transaction requires specific regulatory clearances

3. Real Estate: Include when real property assets are part of the transaction

4. Intellectual Property: Include when IP assets are significant part of the purchase

5. Environmental Matters: Include when environmental liabilities are a material concern

6. Tax Structure: Include when specific tax structuring is contemplated

7. Transition Services: Include when post-closing transition support is required

8. Break Fee: Include when parties want to specify termination penalties

9. Financing: Include when purchase is subject to financing conditions

What schedules should be included in a Asset Purchase Term Sheet?

1. Schedule 1 - Asset List: Preliminary list of major assets to be included in the transaction

2. Schedule 2 - Purchase Price Calculation: Overview of price components and adjustment mechanisms

3. Schedule 3 - Timeline: Detailed transaction timeline with key milestones and deadlines

4. Schedule 4 - Due Diligence Requirements: Key areas and documents required for due diligence

5. Appendix A - Form of Confidentiality Agreement: If not already executed, draft form of confidentiality agreement

6. Appendix B - Key Terms Definition: Detailed definitions of key commercial and legal terms

Authors

Alex Denne

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

Jurisdiction

Austria

Publisher

Genie AI

Document Type

Purchase Agreement

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Manufacturing

Real Estate

Technology

Retail

Healthcare

Financial Services

Energy

Infrastructure

Transportation

Telecommunications

Professional Services

Industrial

Agriculture

Mining

Construction

Relevant Teams

Legal

Finance

Mergers & Acquisitions

Corporate Development

Tax

Compliance

Risk Management

Operations

Strategy

Business Development

Due Diligence

Integration

Treasury

Accounting

Relevant Roles

Chief Executive Officer

Chief Financial Officer

General Counsel

Head of Mergers & Acquisitions

Corporate Development Director

Finance Director

Legal Counsel

Transaction Manager

Due Diligence Manager

Integration Manager

Business Development Director

Asset Manager

Investment Director

Tax Director

Risk Manager

Compliance Officer

Strategy Director

Operations Director

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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