The final phase of a merger and acquisition involves the sale and purchase agreement. This takes place after the due diligence procedure and after the buyer has analyzed the true state of the business. Once everything is in order, it is time to map out the agreement as well as the sale price. The sale and purchase agreement is the document that formalizes into public the deed and is what is presented to the notary. A business broker for Internet companies San Diego endorses can help with the sale and purchase agreement. Don’t hesitate to ask them for any clarification.
In most cases, the sale and purchase agreement is prepared by the buyer and their legal advisors. They will prepare the first version of the agreement which will have to be approved by the seller. However, there are special exceptions in which the agreement can be prepared by you, the seller, or the business broker for Internet companies San Diego recommends. This is common when the sale process is associated with an auction. In this case, the draft will be submitted to the contestants who will return the draft with modifications and an offer.
You have to be very meticulous when preparing the sale and purchase agreement. A single paragraph or clause in the contract can lead to a failed agreement. Working with an experienced business broker or advisor will help avoid making mistakes that may cause the deal to fall through. Find someone with a proven track record in drafting contracts for businesses like yours.
While it is possible to draft the sale and purchase agreement by yourself, the work is best left to a professional. This is because creating this document is not a simple task. It is a very complex task. This is more so to what should be included in the agreement as well as the language to use. Keep in mind that the document will also have to integrate several documents including existing contracts, relationships, assets and liabilities, and so on. As a result of all the work that has to be done, most people get overwhelmed with the huge amount of pages that have to be contained in the first version.
Leaving the work to an expert is the best way to go. Find a business broker for internet companies in San Diego that has sold businesses that are similar to yours. The broker must also have experience creating sale and purchase agreements. Make sure you ask for sample sale and purchase agreements to help you get a glimpse of the work they will do for you.