Deal Structuring and Term Sheet Webinar
This webinar is part of the NACO Academy Module Series.
This highly reviewed webinar is geared to both entrepreneurs and investors. It will take place in one 3-hour session.
Arguably the most important part of a financing with long term consequences, a term sheet lays the groundwork for ensuring parties involved in an investment transaction are in agreement on most major aspects of the deal, thereby precluding the possibility of a misunderstanding. Because investment terms, company valuation, and the longer-term implications of investment terms are not “one size fits all”, it is important that both investors and entrepreneur understand the definition of terms and their application in each distinct deal.
This module will provide both entrepreneurs and investors with an understanding of the purpose of the terms and conditions and their appropriate use in structuring deals to maximize return and minimize risk.
This module will cover:
- Investment form: common shares, preferred shares, convertibles, SAFEs and hybrid structures
- Maximizing the upside
- Preventing missteps
- Mitigating the downside
- Ensuring an exit
- Worst-case scenarios
- Common terms and conditions
- Controversial terms and conditions
- Routine boilerplate terms and conditions
- Strategies that backfire
- The deal structuring process
- Post-investment governance
- Key documents: term sheet, subscription agreement, shareholder agreement.
Learning Objectives: By the end of this module the registrant will be able to:
- Describe the effect of a term sheet
- Explain the purpose of individual terms and conditions on any term sheet
- Create new terms and conditions to address any specific risk
- Justify to an entrepreneur the inclusion of specific terms and conditions in a deal
- Describe how a term sheet is developed into more formal deal documentation.
A mix of case studies, and instructor-led group discussions will predominate the methods used.
Registrants may wish to bring a term sheet or relevant case study from a recent deal.