Business Broker for Medical Companies San Diego – What is a Sale and Purchase Agreement?

The sale and purchase agreement is involved in the final phase of a business sale process. This takes place after the due diligence phase and after the buyer is confident your business is what they want to buy. The sale and purchase agreement is what will be formalized into a public deed and be presented to the notary. It includes the terms and conditions of the sale. When creating this document, it is always good to work closely with a business broker for medical companies San Diego trusts.

The buyer and their legal advisors are in charge of preparing the sale and purchase agreement. The document will have some confusing jargon. Thus, you should have a business broker for medical companies San Diego trusts close to help you understand what you are looking at. The business broker will also ensure that the document covers everything you discussed and doesn’t exploit you. Remember that a single paragraph in the contract can be the difference between a successful and failed agreement. An experienced advisor with a proven track record in drafting successful sales and purchase agreements will be of great help.

With this information in mind, it is obvious that a sale and purchase agreement is not just a simple document. It is a very complex document. The most common question business owners ask is this; what should be included in the sale and purchase agreement? The document must include the array of assets and liabilities, existing contracts, relationships, and everything related to your business. While it is possible to create this document on your own, most people are overwhelmed by the huge number of pages this document contains.

As for what is contained in a sale and purchase agreement, here are the basic details that must be included:

Description of the transaction. This includes information on whether you are selling the business or some of its assets.
Terms of the agreement. Everything that was agreed upon must be included in the sale and purchase agreement.
Representations and warranties of the sale and purchase agreement.
Limitations on the seller’s responsibility.
Conditions of the sale and purchase agreement. A common condition included is a non-compete clause. This keeps the seller from setting up a similar business in a given area.

The sale and purchase agreement is very comprehensive. It is paramount that you, as the seller, ensure all your wishes are captured in the document and that the buyer doesn’t include clauses that end up exploiting you. An experienced business broker for medical companies in San Diego will help review this document.

Business Broker for Medical Companies San Diego

What Client’s Say

We Couldn’t Be Happier

"When we thought about selling we had no idea what our business was worth or how to go about selling. What you were able to do was to cut through the fog so that we understood the valuation issue and had a comfort level with the process. As you know we ended up selling for somewhat more than the original valuation and we got all cash and our CPA loved the way our tax liability was minimized. We couldn’t be happier!"

Over $250,000 More

"Our first contact with you shocked us when you suggested that we wait 18 months before selling because you believed that if we hit our projections that the value would be significantly greater. As it turned out we not only followed your advice but also got slightly over $250,000 more than we originally had hoped for. It is seldom that we have had the opportunity to deal with a firm that doesn’t want both money and a commitment NOW. It was clear and obvious that you had our best interests at heart."

You Got the Valuation We Agreed On

"You did a great job on the sale of our business in really beating the bushes for buyers, including a UK company that was an active suitor. You managed to get the valuation that we had all agreed upon and got it substantially all in cash and got the transaction closed with little to no problems or expensive lawyers involved."

Thank You for Handling Our Business

"Our business was smaller than what your firm normally handles but it was a BIG part of our net worth and savings. Thank you for handling our business and we were very pleased and delighted with the results."

More Than Anticipated

"Our transaction was involved as we had different corporate entities located in different states. Our only regret is that we didn’t retain your services before 2012 when we paid $25,000 to a firm in Texas that did a valuation and market analysis for us before then failing to do anything in the way of trying to sell our business. You got it sold for more than anticipated."

The Sales Process