Mergers & Acquisitions...
Merfeld & Schine, Inc.
Selling Your Company, Step 14:
Purchase and Sale Agreement (P&S)
Concurrently with the due diligence process, your lawyer, the buyer's lawyer, or both will be preparing a definitive purchase and sale agreement based upon the mutually agreed upon letter of intent.
The P&S can be prepared either by the business sellerís lawyer or the business buyerís lawyer (slightly more often itís prepared by the later). Regardless of which lawyer prepares the document, both lawyers will be negotiating it point by point.
Other legal documents such as non-compete agreements, consulting contracts, etc. will also be prepared in advance of closing and negotiated by the lawyers.
Sometimes, in the case of an asset sale (as opposed to a stock sale), the document is referred to as an asset purchase agreement (APA). For all intents an purposes, it is the same thing as a purchase and sale agreement. That is, it is the definitive document for the transfer of the ownership of the business' assets from seller(s) to buyer(s).
Next step: The Closing
Back to Summary of the Selling Process page
We focus on (but do not entirely limit to) companies with sales in the $1MM to $20MM range located in the New England States: MA, CT, NH, RI, VT, ME.
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