Contract for sale of business
Discussion
I've agreed the sale of my business with about the only group of people who would actually have been capable of running it to the requirements of all existing customers and interested parties, which is quite fortunate.
Now however we need a contract to govern the sale (basically a sale share). Does anyone have or know where I could get a basic model form or pro-forma for this?
I've got a couple of share purchase agreements kicking around from my former life as a lawyer, but they're all huge things for the sale of multi-million pound businesses, so a bit more than what I am looking for.
Now however we need a contract to govern the sale (basically a sale share). Does anyone have or know where I could get a basic model form or pro-forma for this?
I've got a couple of share purchase agreements kicking around from my former life as a lawyer, but they're all huge things for the sale of multi-million pound businesses, so a bit more than what I am looking for.
Nevin
My advice, pay a commercial lawyer to draw one up, this will ensure that there are no obligations on yourself after the completion of the deal.
If you mod a previous document or crib one off the net, etc, you could well end up still be liable for all sorts of things.
Pay the cash, sleep safely!
davidy
My advice, pay a commercial lawyer to draw one up, this will ensure that there are no obligations on yourself after the completion of the deal.
If you mod a previous document or crib one off the net, etc, you could well end up still be liable for all sorts of things.
Pay the cash, sleep safely!
davidy
Best bet is to see a solicitor (but then I would say that). If you want something simple and are prepared to accept all the risks which come with that (or more importantly your purchasers are prepared to accept that) then it shouldn't be cost-prohibitive.
or just sell the shares on a stock transfer form - nice and simple but no protection for anyone.
PM me if you want a chat/proper quote.
or just sell the shares on a stock transfer form - nice and simple but no protection for anyone.
PM me if you want a chat/proper quote.
For something like this, as much as I would love to advise otherwise, this is one of the times that a solicitor is the best way forward.
What you don't want is liabilities later on for things you never thought of, you want a clean break and for there not to be problems. For the sake of what it would cost, unless the business you are selling is worth less than a small car then I would seriously get a professional to write the contract.
They will of course have their own templates, but will tailor them to your exact situation and the specifics and things you probably never thought of.
What you don't want is liabilities later on for things you never thought of, you want a clean break and for there not to be problems. For the sake of what it would cost, unless the business you are selling is worth less than a small car then I would seriously get a professional to write the contract.
They will of course have their own templates, but will tailor them to your exact situation and the specifics and things you probably never thought of.
I was tempted to DIY recently but having had the review of the contract drawn up by the otherside I was able to agree a range of changes which [proetcred me , without upseting them too much. Importantly it protected my IPO over the product I was licensing which I was about to sign away on a 'standard contract'.
Worth the spend to get proper advice I would say on a simple risk/cost basis.
Worth the spend to get proper advice I would say on a simple risk/cost basis.
Okay, going to get someone to do it for me. If drawn up a basic heads of terms and am now trying to find someone to instruct. Its like a ghost town out there though (in Edinburgh at any case). You'd think in this market people would jump at the chance for some work, no matter how small.
The thing to remember is that the solicitors are working for you. Make sure they understand how thorough / complicated you want the contract to be. You don't want to be spending 20% of the sale price on legal fees....
I've done small deals on a handshake, but larger ones did indeed require proper work from solicitors. Although even then, the two sides would often get into a very heated argument about a relatively minor point, which I and the buyer were able to sort by stepping out of the room for a few seconds.
I've done small deals on a handshake, but larger ones did indeed require proper work from solicitors. Although even then, the two sides would often get into a very heated argument about a relatively minor point, which I and the buyer were able to sort by stepping out of the room for a few seconds.
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