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.