Let the laymen set the deal!

Once in awhile, it’s nice to see your advice echoed in the halls from someone like Warren Buffett. Since my early investment and venture capital days, I have promoted the concept of a simple “terms sheet” to set down the deal terms between the companies involved, making sure that the businessmen understand the business issues first.

Your attorneys serve an valuable role but it’s invaluable for both sides to be very clear about the business objectives and get that down on paper until they’re satisfied it reflects the core principles of the business deal being made. There will be bumps as the legal representatives sort out the details, but by returning to this initial document, you’ll be reminded of your original business intentions and be more certain of actually getting the right deal done.

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