Negotiate Term Sheet
This is the time when the objectives you set out in Step 1 come into play. You must establish your own priorities including understanding the type of deal structure you prefer. Here are some alternatives to think about:
What Elements Can You Negotiate?
Negotiation: The Basics
- Determine your own position before beginning
- You have the most leverage early in the process
- Preparation and completeness up front will strengthen your position
- Make sure the potential lender understands your deal parameters
- Build a negotiating framework leading to common ground
There are going to be times and situations when you will be well-served by having expert outside assistance.
Lawyers’ Responsibilities
- Corporate law – governance, rights & duties of board and shareholders
- Contract law
- Intellectual property – trade secrets, copyright, trademark, and patents
- Tax law
- Securities laws (public and private company stock)
The Role of Your Accountant
- Review your business’s financial records to ensure GAAP compliance and assist in recasting financials
- Assemble new or adjusted financial statements
- Answer questions from Lender’s due diligence team
- Address tax issues raised by either party
PQ can provide a list of preferred third-party advisors for Step 10 including Tax Consultants, Lawyers, Accountants and more.
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