Non-competition obligation for a specified period, for example. B three years, when the seller agrees not to compete with the buyer. In the event of inaccuracy, inaccuracy or misinformation, the purchaser of the business may be compensated for the damage caused, the eventuality or the loss. To this end, liability guarantee clauses are established. In addition, withholding part of the price or depositing that portion is usually entered into a bank account called a trust account. In other cases, a simple bank guarantee is agreed. Often the contract for the sale of assets is signed, but the conclusion does not take place until due diligence has been concluded. In this case, the asset purchase agreement contains provisions relating to the seller`s activity prior to the conclusion. An asset repurchase agreement is a contract that concludes the terms of an asset sale.
Such an agreement is also necessary when only a portion of a company`s assets is sold. Some asset transfers during an asset sale, such as the transfer of intellectual property or real estate rights, make such a contract even more difficult. “In the event of inaccuracy, inaccuracy or misinformation, the purchaser of the business may be compensated for the damage caused, the eventuality or the loss. To this end, liability guarantee clauses are established. The last expected phase of an ATM process is called the sales contract or SPA. After all the due diligence and if a buyer has analyzed the actual state of the business for sale, it is finally time to represent the price of the contract and the sale price of the business. This is therefore the document that will be formalized in an authentic deed and which will ultimately be presented to a notary, including all the conditions of sale. If you plan to sell your business before the sales contract, you need to go through different phases that will help you maximize the final price.
These measures can be decisive for the future of the company. If you need instructions from a reliable team during the process, please contact us. Notify the buyer if the value of an asset changes significantly or if liability, finances or liability change significantly, giving the buyer access to audits or diligence, in the event of a sale of assets, the relevant assets entering the transaction and the bonds transferred must be described accurately. Similarly, it is defined whether all goods that the seller usually uses, such as a vehicle.B. a vehicle, a parking lot or even their home, are excluded from the transaction. Delete all assets that are not part of the purchase, This is not an exhaustive list and serves only a general example of the types of conditions that should go into an asset purchase contract. Below is a more detailed list of many of these conditions. Do not have assets that are part of the contract, if an asset purchase agreement must list at least the following: On the one hand, the seller guarantees that the circumstances described in the company are correct and correct. Some of the events that the seller must confirm are: the company is one of the signatories and they have the power to sell the business; The transaction is not contrary to the law or other previous contracts; the entity holds, as does the number of shares, the authorization that all financial statements are correct, all tax payments are updated, that the entity has not undergone a substantial change in its performance since due diligence (distribution of dividends, salary increases or newly signed contracts that could harm the purchaser); Copies of the statutes are delivered to the buyer; and patents and corporate trademarks are available. Writing the sales contract requires a high degree of precision and diligence; A single paragraph of the contract may be the difference between an agreement reached or an agreement that has failed.