Document background
An Asset Purchase Term Sheet is typically used in the initial stages of an asset acquisition transaction when parties have reached preliminary agreement on key commercial terms but before detailed due diligence and final documentation. Under Danish law, this document serves as a roadmap for the transaction, outlining fundamental terms such as asset description, purchase price, payment structure, and key conditions. While mostly non-binding, it provides a framework for negotiating the definitive agreements and helps identify potential issues early in the process. The term sheet is particularly important in the Danish context as it helps ensure compliance with local regulatory requirements and business practices, while facilitating efficient negotiation and documentation processes. It's commonly used in various types of asset purchases, from real estate to business assets, and helps align parties' expectations before significant resources are committed to the transaction.
