Definitive Stock Purchase Agreement

It provides a complete detail of payment terms after the closing date and contains in particular the serious money deposited in the trust account, earn-outs, third-party financings, working capital required at the time of closing, etc. The clauses normally contained in such an agreement are as follows: many purchases from small businesses are made with a single contract. The same document used to make an offer to the company is often the final agreement that is signed at the conclusion. A buyer makes an offer to buy the business, as well as a serious deposit of money. Buyers and sellers then perform due diligence. The same agreement, initially filed to make an offer for the transaction, is then used at the time of conclusion to transfer the assets. Parties to a small business transaction are often not as sophisticated as those involved in larger transactions and using an agreement simplifies the process….