Most sales are rather friendly, but there are things that the selling shareholder – and other shareholders – need to know about the legal process to get a good result. The sale of assets is an agreement by which the company sells its assets to the buyer. Assets may include goods such as facilities and equipment, inventory, business documents, intellectual property (brand protection), computer software, important customer/supplier contracts, rights to use business premises, and anything else the buyer needs to manage your business in the future. Think of your business as a box full of individual items (which are each of the assets), and during an asset sale, you remove each item from the box and sell it to the buyer. This Agreement shall apply to the sale of shares in a private company in each sector for cash. It includes a smaller choice of collateral than other share sale contracts we offer, making it suitable for transactions where the risks to the buyer are lower: for example. B if the buyer is familiar with the business or if the seller is familiar. Assuming you do not manage the transaction in your personal capacity, the first question is whether you will sell the assets or sell the shares (we refer to shares in this article, but if you do not conduct your business through a limited liability company, our comments apply in the same way to the sale of other relevant stakes). In making this decision, we advise you to seek the advice of your legal or accounting advisor, who can help you evaluate the options.
They must also work with the buyer to find an amicable solution. A share purchase agreement is entered into by one party to purchase shares from another party; As a rule, the shares are for a private company. The agreement describes the amount, schedule and method of payment as well as any insurance or guarantees of the buyer and seller. A shareholders` agreement often sets out the sale process to be followed and the valuation of the shares. Normally, the only real difficulty in selling shareholders of private companies is to find an agreement on the price. Once this is done, the mechanisms of a transaction are quite simple. The best structure of your sale or purchase depends on the situation and what you want to achieve with the transaction. If you need help with the sale or purchase of your business, please do not hesitate to contact Lane Neave`s business law team. There may be “Drag Along” or “Tag Along” clauses, which means that other shareholders may also be required to sell or they may ask the buyer to acquire their shares. This is an agreement to sell a majority or minority stake in a private company for cash (not shares).
The company could operate in any sector and the seller and buyer could be individuals or other companies. The document presents a wide range of guarantees that protect the value of your investment and provide you with the greatest legal advantage. They can be continued if the transaction progresses and the buyer later learns information that would have influenced the purchase decision or the purchase price. This is very relevant if the buyer is not an existing shareholder. A share sale is an agreement of the company`s shareholders to sell their shares in the company to the buyer….