Legal Documents required when buying a business.
The primary reason a seller places a business for sale with a broker are,
1. To weed out the time wasters
2. To handle the legalities around the business sale.
There are 3 primary documents required to complete the purchase of a business.
1. The Non Disclosure Agreement. Serious sellers normally require that an interested party sign a non disclosure agreement prior to disclosing important information pertaining to the business listed for sale. Apart from the obvious importance of disclosing business sensitive information, this is also an important step in eliminating time wasters. Most sellers will not disclose their contact details to you, and the process they require will be for you to fill in the contact form. You will then be presented with a Non Disclosure Agreement. When that is signed and returned, the seller will take the potential buyer more seriously, and start disclosing.
2. The Letter of Intent. Once a buyer has done the due diligence, he normally presents the seller with a letter of intent. Depending on the wording, this is either legally enforceable or not legally enforceable. The primary purpose of the letter of intent, is to inform the seller of your intentions with the goal of discovering whetehr the rerms of your intended offer are accepetable. Typically these set the secene for the sales agreement, and iron out any obstacle. The letter of intent is also a mechanism to inform the seller of your seriousmness to purchase, and if the intentions are in line with the sellers expectations, allows the seller to take his business off the market.
3. The Sales agreement. This is the final legal document required to finalise the sale. Biz2Sell provides Business Sellers with 100 years combined experience. Fot Platinum Package sellers, we assist in negotiating, drafting and concluding the sales agreement