In the early stages of negotiating a sale or purchase of a business, there are some important documents you might want to consider.
Here are our key contenders:
Heads of Agreement:
This document can be drawn up when the parties reach an agreement on key commercial terms of the transaction. It can include what will be included in the sale, the price, the timeline, and any other vital agreements between the parties. These documents are usually pending a contract; remember that they can be binding. It is essential to seek legal and tax advice early on.
When negotiating to sell a business, you may be dealing with confidential information, like the components of the sale and sensitive commercial information. To protect your business and your intellectual property, it is essential to have a confidentiality agreement between the parties before any disclosures are made.
Exclusivity Agreements:
Purchasers may wish to seek exclusivity agreements with vendors for a certain period to ensure they are the only person investigating and spending time and money on their due diligence in pre-purchase situations. This could protect purchasers from being undercut or swindled out of a deal.
If you require assistance with a sale or purchase of business, contact Rankin Business Lawyers for practical, on-point commercial legal guidance.