The contract
Finally, sale of business will include a combination of a final price, other
conditions, and the general estimation of risk. Probably, you will agree to pay
higher price, if other conditions (the installments, mortgage and so on) seem to
you suitable. On the other hand, you can insist on downturn of the price if the
financial risk connected with purchase of the company, will be too high. The
general result will vary according to type of the given business, and
propensities of interested persons.
After achievement of the arrangement, the contract precisely stipulating all of
the party of the transaction should be made. In the similarcontract following
items usually stipulate:
Exact definition of that is transferred whom and to whom, under what price. This
item should include detailed splitting of the prices so that value of each item
of property has been specified.
Details concerning all and obligations which you are ready to accept at
fulfilment of purchase.
Way of payment (cash, the check, actions of other company, and so on), to what
term, which image.
All changes in the price which can happen between the moment of signing of the
contract and the termination of the transaction (can be included sale of stock,
purchase of the equipment, tax payments and so on).
Guarantees of the seller concerning reliability of the given information, and
additional conditions, on a case if this information will appear inexact.
Instructions of obligations of the seller concerning management of business -
till the moment of change of the owner, a method of transfer of possession, and
any stipulated duties of the seller after fulfilment of purchase.
How to act in case of any losses or damages which can happen with business
between the moment of signing of the contract and the termination of the
transaction.
The paragraph limiting an opportunity of the seller to compete to sold business
after fulfilment of the transaction, or limiting the right of the seller to
create subsequently the same business.
Details of end the transactions including date, time, a place, and the list of
responsible persons.
The penal sanctions attracted on the seller, in that case if the information
given by it will appear false.
Size of an insurance payment which you as the buyer pay and which is a guarantee
of that all the stipulated conditions will be executed by you.
If you have read up this clause up to the end you really wish to buy business
and you, for certain, have understood, such transaction is how much complex.
Therefore last advice to you ??“ address to professionals. Professional
business-brokers can not only pick up to you a suitable variant, but also will
consult in occasion of the price of got business ??“ you will not pay more dearly,
completely will carry on all negotiations and will register the transaction.
Having the professional adviser, you will be assured that have not bought ?« a
cat in a bag ?» and, in a consequence, you should not pay off for the decision.
08.05.2007. 16:44
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