Key considerations are:
- Company valuation
- Due diligence (if buying another company)
- Shareholder contracts (if new shareholders are introduced)
- Sale and purchase agreement
A sale and purchase agreement covers the key terms agreed by the buyer and seller as well as setting out the duties, responsibilities, obligations and requirements of the contract. It will spell out what happens upon signing – what monies go where, what documents are signed and which assets are transferred to the new owners. It will also cover any warranties or guarantees made by the seller covering items which are not yet known, or unquantifiable, at the time of signing.