How Fresh Legal Perspective Can Help
Have you grown a successful business enterprise? Are you ready to trade in your business suits and appointment book for a set of golf clubs and travel reservations? Or, are you looking to purchase an existing business? Do you know what paperwork is needed to facilitate the transfer of your business? Have you considered the tax consequences of the sale?
Stock Purchase Agreements explain the how the ownership of a company will be transferred from the seller to the buyer. If you schedule a consultation, the experienced business law attorneys at Fresh Legal Perspective can provide legal counsel in designing, negotiating, and drafting effective Stock Purchase Agreements.
What to Expect from a Stock Purchase Agreement
Stock Purchase Agreements provide the legal framework that governs the process of transferring company ownership from the seller to the buyer. The Stock Purchase Agreement sets out the rights and responsibilities of each party to assist in an orderly transition.
A professionally drafted Stock Purchase Agreement will include the necessary disclosures and will allow the buyer to undertake due diligence. Proper disclosures and thorough due diligence benefit both the buyer and the seller by reducing the likelihood that the transaction ends with litigation.
In most cases, sellers prefer to use stock purchase agreements when selling a business because the buyer purchases the stock along with the company’s liabilities. Whereas buyers prefer to use asset purchase agreements because they purchase only company assets and do not assume any of the seller’s liabilities.
Both buyers and sellers benefit from having a business and tax attorney to evaluate the tax consequences of the business sale while ensuring that the contract provides the protection necessary for a smooth transition. Our firm can assist in the creation of a new Stock Purchase Agreement or the review of an existing one. To retain our services, please contact us today.
This portion of the site is for informational purposes only. The content is not legal advice.