several key documents, which come at the beginning and end of the process, are imperative to the success of the deal — the letter of intent (loi), the offer to purchase and the purchase agreement. this document is typically around 3-5 pages long and is presented at the beginning of an acquisition deal. it sets the stage for what is to come and provides the framework for the entire structure of the acquisition. note that the closing timeline outlined in the loi begins when it is presented to the lender. who’s involved: if the buyer is working with a business broker, the broker will help facilitate the creation of the loi. what it is: think of an offer to purchase as the middle-ground between an loi and a purchase agreement.

now that you’ve decided to purchase an existing business, and know which company you want to buy, you need to formally solidify the transaction with a business purchase agreement. this is a legal document that sets forth the terms of the transfer. if the business being purchased is a corporation, it also may be necessary to have a small business stock purchase agreement. a transfer of the assets of a corporation may have different tax consequences from a transfer of stock, so it is important to seek out competent tax advice as part of your purchase process. there are certain warranties, representations, and contingencies that are common to the sale of a business.

also referred to as a business transfer agreement, a business purchase agreement is entered into between a seller and purchaser for rights to the business.4 min read a business purchase agreement, also referred to as a business transfer agreement or an offer of business agreement, is an agreement entered into between a seller and purchaser for rights to the business. in the event that you are interested in purchasing a business, or in the alternative, if you own a business and wish to sell it to an interested buyer, this agreement is the most important document that explains in detail the terms of the deal. upcounsel can provide you with all of the necessary resources to create a well-drafted business purchase agreement. if the business exchange takes place prior to the transaction with the third-party vendor, such terms and conditions should be put forward in the agreement.

a business bill of sale is a form that transfers an individual’s ownership of a company to a buyer in exchange for payment. a business bill of sale is evidence that a person transferred their ownership in a business to another party. depending on the structure of the company, this can include the transfer of shares, stocks, or the company as a whole. a business bill of sale and a purchase agreement are used during a business sale transaction but at different steps in the selling process. after all conditions have been met and money has changed hands, a bill of sale can be used to document the transaction, and a copy can be kept for the parties’ records. the bill of sale is used at the end of the selling process, after the parties have sorted out the financials and how they plan on transitioning. completing the bill of sale is one of the easiest steps, as the form is short and can be filled out and signed in a matter of minutes.