Negotiating a Term Sheet


In last month’s column, I outlined some basic considerations for vetting a potential business opportunity. In working with physicians who are frequently approached to invest in new or growing businesses, I have found it helpful to develop some screening criteria. In this column, I will assume that the opportunity has passed the preliminary screening, and now it comes down to negotiating the deal. Obviously, I would encourage any reader to work with their advisors to analyze and negotiate an actual transaction. However, if you are going to diversify your investments by being an “angel investor” in businesses, then I believe it is also important to be educated on the fundamentals of deal-making. I also note that one of the things that can make this phase uncomfortable is that it is often a friend or family member asking you to invest in a project. This can make the deal negotiating awkward as you have to bargain for your investment terms. Therefore, I find that many investors like to use an intermediary in this context in order to provide a “buffer” and to avoid hurting any pre-existing relationships.

Please see article below for more information.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Butler Snow LLP | Attorney Advertising

Written by:


Butler Snow LLP on:

Popular Topics
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.