Buying a business:
The final contract and beyond
The purchase is completed when the sale and purchase agreement is signed. The purchaser’s lawyers draft this document and the vendor's lawyers suggest amendments. It will have been the subject of much redrafting in the previous weeks as it is updated for the results of the due diligence and negotiation between the parties.
There are usually a considerable number of other documents signed at completion, such as property transfer forms, leases, restrictive covenants and service agreements.
After completion you will no doubt give a huge sigh of relief at the conclusion of the acquisition process, which is usually felt to be very stressful. However, that is not quite the end of the process, as there may still be things to be done, including:
- preparation and review of completion accounts if these are to be used to finalise the amount of the consideration
- preparation and review of calculations of any contingent consideration
- payment of any deferred or contingent consideration
- negotiation and settlement of any amounts claimed under the warranties and indemnities
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Where next?
Within The acquisition process…
- Finding and approaching suitable target businesses
- Project management and negotiation
- Estimating the value of the business
- Deciding what to buy
- Financing the deal
- Identifying any key contractual terms
- Heads of Terms
- Due diligence
Within Buying a business…
General...
- Contact us about this issue
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- Request a meeting with us
