Share Purchase Agreement Key Points

Thank you for reading the CFI guide on the main features of a sales contract. To continue learning, please explore these additional CFI resources: as a key component of a SPA, this section of the agreement typically sets the number of shares to be acquired and determines the rights, securities and shares acquired by the buyer in the shares. This section should also indicate the purchase price of the shares and how it is to be paid (cash, buyer`s securities, assumption of debts/liabilities, exchange of assets (real estate, personal property, intellectual property, etc.) or a combination of the above, as well as the time and place of the transaction. In this context, it should also be indicated whether the execution of the SPA and the closing take place simultaneously or whether there is a gap between the execution and the closure (a deferred closure). With regard to the purchaser of the company`s shares, there may be some contractual commitments to the company, which are also called guarantees that will continue to bind a shareholder after the sale of the company`s shares. While the guarantees may be beneficial to the purchaser of the company`s shares, the party giving the guarantees must comply with them. Any warranty given by a seller is given personally to a buyer….

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