• June 2019
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Business Purchase Agreement

A Business Purchase Agreement is a contract for the purchase of a business, including appropriate terms regarding liability, confidentiality, and non-competition.

Uses

  • Purchasing an existing business.
  • Purchasing a share of an existing business.

Overview

New businesses are not always startups. Sometimes, entrepreneurs break into a market by purchasing an existing company. In these cases, the parties to the sale must execute a particular type of Purchase and Sale Agreement known as a Business Purchase Agreement. A Purchase and Sales Agreement is a legal contract that, once executed, sets in motion some exchange of products, services, real estate, or other assets. This broad category of contracts can be used as a basis for nearly any transaction to take place. As a result, they can and should be crafted to provide an effective framework for a particular transaction based on the facts and circumstances of that specific exchange. The purchase of an entire business or a portion of its operations is a complex transaction that requires careful planning. The parties to the exchange must consider how real and intellectual property will be dealt with, how shareholders and employees may be impacted, and what should happen in the event that either party breaches the terms of the sale. Individuals purchasing companies may wish to negotiate non-compete agreements, non-disclosure agreements, or other terms and conditions that would protect their new business. This Business Purchase Agreement addresses the common issues associated with the purchase of business operations. This provides individuals involved in these complex transactions with a basic framework for the exchange and an idea of what is necessary to move forward with the purchase.