Negotiating a business purchase agreement requires a systematic approach.
We recommend engaging experienced legal and financial professionals to guide you through the process. A recommended step to begin with is to send a non-binding Letter of Intent (LOI) that outlines key terms and conduct thorough due diligence to uncover any issues.
Either on your own or with the assistance of counsel, negotiate the purchase price, terms, and financing, taking into account asset and liability allocation, as well as ongoing involvement by the seller. Ensure you address essential legal components, including whether it is an asset or share purchase, employee considerations, tax considerations, and non-disclosure and non-compete clauses.
Finally, ensure the agreement is meticulously reviewed by your counsel before the closing date. A well-structured purchase agreement and professional guidance are critical for a successful business acquisition and can help avoid headaches and pitfalls in the future.