Business Purchase Agreement Template

Who Should Use a Purchase of Business Agreement?

A Business Asset Purchase Agreement should be used by individuals who are looking to transfer the ownership of their business. If an individual wants to make an offer and buy the rights to a business, they should consider using it as well. The agreement can help both sides obtain necessary data about each of them and the business itself, as well as legally bind them to follow any obligations they have stated in the document. Not having the agreement might end up with bad results for both sides, such as unknown liabilities or a lack of rights to make the deal.

How to Write a Purchase Agreement for a Business?

When making a "Purchase of Business" Agreement, the filer should follow a certain structure in order not to miss important items that can affect the whole deal. The necessary sections include the following:

1. Names of the seller and the buyer . The parties should designate their full names and addresses.
2. Description of the business . The filer should provide the name of the company that is conducting business and a description of the business that will be transferred.
3. Assets and liabilities that are transferred with the business . All of the assets and liabilities that are transferred with the business must be listed here. If there are any exclusions from them it must be stated here as well.
4. Price and payment terms . The parties use this part to designate the payment purchase amount and the terms under which a buyer will transfer the payment.
5. Final business sale date . Here an applicant must designate the final date of the deal and the actions that must take place before it.
6. Representations and warranties . In this part of the agreement, the parties must verify their rights to perform the deal.
7. Relationship with employees . If the parties have agreed, they may include a clause about the employees of the business, whether they will be terminated by the closing date, or whether they will receive a notice with an offer to employment.
8. Expenses . The parties must indicate who will take care of the expenses of the deal or whether they will share them.
9. Signatures . In the last part of the contract, to state their will, the parties must sign the contract and state their credentials.

The filer can include more sections to the agreement, such as a Non-Compete Addendum, severability, governing law, general provisions, etc.

What Are Assets and Shares in a Business Purchase Agreement?

Purchasing a business is a complex process. Under a Business Purchase Agreement, a buyer can purchase a company's assets or shares. Assets include items like the premises, contracts, machinery, etc. In this case, a buyer is entering into an agreement with the company itself. Buying shares means that an individual will purchase not only assets but liabilities as well, from a shareholder - a person who holds a title of ownership of a share in a business. Therefore, the contract will be signed between a buyer and a shareholder.

Haven't found the form you are looking for? Check out these similar templates:

• Business Sale Agreement;
• Business Contract;
• Offer to Buy a Business.