Once a potential buyer is satisfied after due diligence, the next step is usually drafting the sale and purchase agreement. This is a document that outlines all the agreed terms. It is also what is sent to the notary. While a business broker for Internet companies Orange County endorses can help with this document, it is always good to know what should be included in it.
Description of the transaction
In this part, the agreement will explain the type of operation and whether you are selling the business as a whole or just the assets. The real intentions of the sale must be described. It should be done in clear and concise language. If you are considering a sale of assets, the agreement should detail the assets that will be transferred to the new owner. Any property that will not be included in the sale must be defined clearly. If it is a sale of stocks and shares, there should be a section that defines what will be sold. If several companies and shares of companies are involved, this should be clarified in detail. An experienced business broker for Internet companies Orange County relies on will be able to capture these vital details.
Terms of the sale and purchase agreement
The agreement should indicate the price and the corresponding conditions such as forecast, payment methods note of deferred payments and circumstances that can produce an adjustment of the price, and so on. The contract must also have information of if surplus cash is part of the transaction or if it will be taken by the seller as a dividend. Using an experienced business broker that has sold numerous internet businesses will ensure you never leave anything out.
Limitations on responsibility
There is a limitation to the responsibilities of a seller regarding their responsibility with Social Security, Treasury, or Third Parties. There are also time limits on the liability claims except for cases relating to labor, tax, social security, and administrative contingencies.
Any special condition such as a non-compete clause must be included in the sale and purchase agreement. The purpose of these clauses is to keep the seller from setting up a parallel company and taking customers with them.
As you can see, a lot goes into the preparation of a sale and purchase agreement. The best thing you can do to avoid surprises is to work with the most experienced and dependable business broker for internet companies in Orange County. Never take the risk of preparing the sale agreement on your own; you will end up missing vital details.