You will reach the point where, if the business looks to meet your requirements, you should enter into a conditional Sale and Purchase Agreement. This agreement forms the foundation for the negotiation process and effectively secures your legal option to buy the business. This is a major step as negotiations move from a verbal discussion to a physical agreement. The broker and seller discuss the offer, price and the terms and conditions of the offer, which will almost always include a due diligence review clause inserted for your benefit. The Sale and Purchase Agreement is normally completed by the McDonald Real Estate broker on your behalf but in consultation with you and your lawyer. You should seek your Accountant and/or Solicitors advice before signing the sale and purchase agreement. The Sale and Purchase Agreement also acts as a plan for the actual sale of the business from which all parties and their respective team of advisers will put in place specified actions within or by specified times to bring the business sale to a close. The Sale and Purchase Agreement is the result of the negotiation process and will record everything that was agreed to between the buyer and seller. What goes in this agreement? To put this agreement together your McDonald Real Estate business broker will require some key information. This will include full particulars of the transaction including parties, a description of the business, the price and breakdown of assets, the deposit amount, possession date, lease particulars, turnover warranties, stock variance amount, restraint of trade and handover period. A number of special conditions will be inserted covering the scope and term of the due diligence period. SALE AND PURCHASE AGREEMENT eieio.co.nz
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