One crucial document will need to be drafted when you get to the closing phase of a business sale. That document is the sales contract and is prepared by a specialized commercial attorney. The document is also referred to as the sale and purchase agreement. When reviewing this document, you must always involve an experienced business broker for medical companies Orange County trusts. In this post, we will be looking at what is included in this crucial document.

Description of the transaction

This explains if you are selling a business or assets. The real intentions of the sale have to be described in concise and clear language. If the transaction involves the sale of assets, the relevant assets entering the transaction will be detailed clearly in the document. The document should also define the assets that will be left out. If it is a sale of stocks and shares, a section should define what is being sold.

Always keep in mind that the sale and purchase agreement is what will be formalized into a public deed and be presented to a notary. Involving a business broker for medical companies Orange County depends on will ensure you don’t miss any important points.

Terms of the sale and purchase agreement

The document will indicate the price and corresponding conditions such as payment methods, forecast or note of deferred payments. It will also detail the circumstances that may lead to a price adjustment, currency of payment, etc. You need to pay close attention to these terms as the wrong terms may hurt you later on.

Representations and warranties

As the seller, you will be guaranteeing that the described circumstances of the medical company are accurate. The seller has to corroborate things like:

  • The company belongs to the signatories
  • The signatories have the authority to sell it
  • The transaction doesn’t violate any laws or other contracts,
  • The company holds the specified number of shares,
  • All the financial statements are accurate,
  • Tax payments are up-to-date,
  • The company hasn’t suffered a major change in its performance since the due diligence phase.

If there is any untruthfulness, the buyer can be compensated for the loss, contingency or damage.

Other details included are the limitations on responsibilities as well as the conditions of the sale and purchase agreement. Always make sure you understand every detail contained in the sale and purchase agreement before signing anything. Again, working with an experienced business broker for medical companies in Orange County will keep you from being on the losing side.

Business Broker for Medical Companies Orange County