We Talk about a Purchase Agreement

After 2 ½ years of looking for a software business to buy with my
partner, I think we’re finally getting towards the end! And at
the end of the due diligence process when you’re going to buy a
company… you’ve got to sign a purchase agreement. This purchase
agreement is the big contract; it’s the document that lays out
all the final terms and conditions. And when it’s signed, the
money is wired — and it’s official: you own the company.


So because this is all so timely for us, today we’re going to be
talking all about purchase agreements! In fact, we’ll be going
through the actual 57-page document I received for this software
business to explain each section to give you all an idea of what
to expect when it comes to negotiating your first purchase and
sale agreement!


Key Takeaways:


[:11] About today’s episode on purchase agreements!


[2:22] We begin looking at the 57-page purchase agreement word
doc, starting with an overview of the table of contents and
section 1, the glossary.


[5:09] Reviewing section 2: the purchase and sale of parent
shares.


[9:40] Reviewing the following three sections that cover
representations and warranties — first up, those concerning the
company.


[16:30] Next up, we take a look at the sections covering
representations and warranties of the sellers.


[17:55] Taking a look at the representations and warranties
concerning the buyer.


[18:58] Reviewing the section that covers the additional
agreements.


[19:52] Checking out section 7: identification and related
matters.


[23:03] Wrapping up the podcast with some final points about
purchase and sale agreements!


[24:54] What should you be focusing on when negotiating these
documents?


[28:14] Thanks for tuning in!


Mentioned in this Episode:


Purchase and Sale Agreement


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