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Buying and selling a business can be a complex process. When selling a business, it is important that you negotiate and sign a legally binding Business Sale Agreement with the purchaser of your business.
But what are Business Sale Agreements and what do they do for you?
Here’s what you need to know.
What Is A Business Sale Agreement?
A Business Sale Agreement is a legally binding agreement that you negotiate and sign with the purchaser of your business. It is used to set out aspects of the sale such as the purchase amount, dispute resolutions, and what assets are included as part of the sale.
Often, the Business Sale Agreement is prepared by the seller of the business (and their lawyers). The purchaser will need to make sure that a lawyer reviews the Business Sale Agreement before they sign it.
A Business Sale Agreement will generally include a list of warranties provided by the buyer and seller. This ensures that the buyer is guaranteed certain actions, and sets out actions the seller does not wish to go ahead with as part of the sale.
Why Do I Need A Business Sale Agreement?
As a seller, a Business Sale Agreement is the cornerstone of your business sale. So, it is important to ensure that this agreement is drafted correctly to confirm your rights to payment. A well-drafted agreement will also ensure that you are protected from liability for issues that may occur with the business after the sale.
What Is Included In A Business Sale Agreement?
A Business Sale Agreement typically includes clauses regarding:
- Assets being sold
- Purchase price and how the buyer will pay
- Completion
- Pre-sale conditions
- Seller’s obligations after the sale
- Warranties the buyer and seller will give
- Dispute resolution
- Termination
Need Help?
A good lawyer will be able to draft your Business Sale Agreement to ensure that your business sale is clearly set out for both the buyer and seller, and that you’re protected if a dispute arises.
At Sprintlaw, we focus on drafting comprehensive, easy to understand and user-friendly agreements for businesses.
Feel free to get in touch with us to get things started with your Business Sale Agreement! Our friendly team can be reached at 1800 730 617 or at team@sprintlaw.com.au.
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