This Term Sheet Template from CFI is a free example of a fundamental legal document used in private capital raising transactions.

A Term Sheet is a proposed agreement laying out the main terms and conditions surrounding an investment that could be made. More intricate and in-depth legal documents will then be drafted to accompany and elucidate the term sheet. Since there is no signatory aspect, this is a nonbinding agreement and thus performs more akin to an offer. This example term sheet template is a simple document but contains some complicated terms. Here are some definitions to aid you in your use of the template:
  1. Capitalization – the total sum of a company’s stock, long-term debt, and retained earnings
  2. Liquidation Rights – this sets out what will be received by which shareholders in the event of the corporation’s liquidation
  3. Voting Rights – this defines who among the shareholders may vote on certain policy issues
Before a Term Sheet is delivered to potential investors there are typically other documents that can be sent as well. These include a Teaser (also know as a 1-Pager), a Non-Disclosure Agreement (NDA), and a Management Presentation. These documents are accompanied or followed by the Term Sheet and Offering Memorandum. If an investor decides to move forward then the final document called a Subscription Agreement will be signed.   term-sheet-template-doc

How to Edit a Term Sheet Template

Download the free template, then get ready to edit and customize it for your own situation. You'll need to think about items such as the type of securities being offered, offering size, issue price, commission, capitalization, dividends, interest, liquidation rights, conversion rights, anti-dilution rights, voting rights, use of proceeds, closing conditions, and other factors. Once you know all those details you can go about editing the term sheet template to include all the necessary information. Be sure to work closely with a professional legal advisor when delivering a term sheet.  

This business tool includes 1 Word Template

Reviews Add a review
Jarinder Khan

Thanks for the free term sheet template

More From Corporate Finance Institute®

Browse our top rated business templates. See All
REIT Financial Model Template
This REIT financial model template acts as a guideline for modeling a real estate investment trust (REIT). This model will…
Energy Industry Comps Template Energy Industry Comps Template
This energy industry comps template provides a guideline and example of what a comparables universe would look like for a…
Financial Institution Dividend Discount Model
The financial institution dividend discount model uses future dividends to find the implied share price. This model is based on…
Loan Payment Calculator
The loan payment calculator allows users to determine the principal and interest payment each month until the full balance of…
DDM - Excel Dividend Discount Model Template
The dividend discount model template allows investors to value a company base on future dividend payments. This is based on…
Non-directional trading strategy template Non-directional Trading Strategies Template
The non-directional trading strategies template allow users to determine the profit when buying options. This template focuses on non-directional strategies…
See All