The business purchase agreement is one of the most important documents needed for a successful transfer of business ownership. After submitting the letter of intent, the buyers will need to collaborate with the seller to help start an investigative procedure known as due diligence. Rockrose Realty Inc. offers expert advice on due diligence documents that includes a vendor’s list, employee contracts, customers, intellectual property rights, and litigation and real estate holdings of the business. If you are looking to buy or sell a business, contact us to learn more about purchase and sales agreement.
Key Points in Understanding the Business Purchase Agreement
The business sale and purchase agreement include all the assets, financial information, transactions, customer’s list, supplier’s lists, and employee contracts are just the tip of the iceberg when it comes to purchasing agreements. If you are willing to sell or buy a business, even the smallest contract spans several pages. Each document has sections and exhibits that elaborates different parts of the contract in detail.
A business sale and purchase agreement is not something you can come with on your own. You will need the services of a business broker in Florida to ensure that the agreement is flawless. The sales agreement has different names and depending on the type of sale transaction the contents can vary but here is a list of the most provisions included in a sales agreement.
The first section of the sales agreement includes names of all the stakeholders from both buyers and sellers including the business information and location of the business.
The Subject of the Sale
This part of the sales agreement describes and identifies all the assets that are a part of the business. It includes everything from financial transactions to the inventory. In this section of the sales agreement, the buyer assumes the liabilities of the business on sale. It also explains the ownership structure and all the stocks that the buyer will get after the sale. Hiring a business broker in Florida will help you understand all the aspects of the business transaction and documentation.
The Purchase Price
This section of the business purchase agreement enlists the total payable amount for the sale subject. All the payments terms and conditions are included in this section. Information about how and when the payment is to be made to the seller is clearly mentioned. Moreover, the purchase price section includes the information about The Closing, which includes the date and the actual location of the business.
The Warranties and Representation Section of the Agreement
Representations and warranties section includes all the information about both the buyer and the seller. If you are the seller, then you must include all the details of your business including the due diligence, the assets and financial statements and transactions.
If you are the buyer then you must include the details of all the stock that you might receive as a payment. Depending on the requirements of the business deal, you will need a business broker in Florida to help you get all the details.
Rockrose Realty Inc. offers expert broker services to help you create a comprehensive business purchase agreements. Contact us to learn more about our services.