Depending on the size and complexity of the acquired business book and the relative knowledge of the buyer and seller, the buyer can only require the seller`s cooperation after the sale or need more support. The agreement should require the cooperation of the seller and determine the scope and duration of the cooperation. The buyer and seller may also agree to a advisory agreement specifying certain obligations and allowances. The purchase of commercial agreements should be used by anyone wishing to buy or sell a business. The agreement can help give details in the sale, including aspects of the transaction that are for sale (i.e. assets or shares). In order to facilitate the change of business, the parties may include agreements on how and the people who will inform customers of the purchase and sale, as well as other issues that may affect the business transition, such as the transfer of telephone lines, the transfer of mail, the withdrawal or placement of reports on the agency`s former website. Etc. Early resolution of these problems will contribute to a smooth business transfer. No one forgets to include the purchase price in the agreement, but don`t forget other critical conditions such as how they are paid, when paid, consequences and corrective measures in case of non-payment, including a security interest in assets, etc.
The diversity of payment methods and conditions is limited by your imagination. You`ll find a few examples in our checklist – please also indicate how the parties weigh the purchase price for filing tax returns. It contains the terms of sale contained or not contained in the sale price, as well as optional clauses and guarantees to protect the seller and buyer after the transaction has been concluded. When you buy assets in a business, you are not buying the business yourself, but only one aspect of it. This can mean a product, a client list or some kind of intellectual property. The company retains its name, commitments and tax returns. The agreement should contain assurances and guarantees, for example, commitments. B of each party as to the execution of certain things. For example, the buyer wants the seller to inser and guarantee that at the time the expiry policies were issued, the seller was licensed as an insurance producer and had the right to make transactions and that the seller did not receive a significant number of letters of intent that should not be renewed in the last twelve months, which reduced the value of the assets to be acquired.
The seller may require a business buyer to guarantee that he or she is authorized to purchase and that there are no disputes or other procedures that could prevent the buyer from closing the transaction or making payments in any note. Do you buy and sell shares or assets? If the assets, the agreement should include all assets that are included, as well as those that are expressly excluded. Expiration times are probably the greatest asset, but don`t forget physical property, for example. B the computer software you may need to access the expiry records. These include intangible information such as the right to use telephone numbers, fax numbers, web addresses and the name of the sales agency. The payment of commissions and the accounting of the return commission are carried out on an ongoing basis. The agreement should include clear conditions for the allocation of commissions due or payable, liability for return commissions, expenses, costs and debts, and absolute data relating to these accounts and how these accounts are settled. Attention to details such as this in the agreement will help avoid disagreements and misunderstandings after closure. Once the buyer has purchased the company book, he will want to protect himself from competition, solicitation and disclosure by the seller that could erode or destroy the assets that have just been acquired. First, the buyer should check (and insurance and warranties must indicate) that current and current employees