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Creating a sales agreement for a merger or acquisition

On Behalf of | Mar 29, 2023 | Business Law |

Before moving ahead with an acquisition or merger, you have to review many different issues. From business valuation to carefully reflecting on your goals, it is vital to safeguard your interests and approach the process properly. In addition, you need to focus on preparing a comprehensive sales agreement.

In some instances, negotiation becomes necessary, and it is vital to work out any issues before signing the contract.

Key elements of a merger or acquisition sales agreement

The U.S. Small Business Administration covers some of the crucial aspects of an acquisition or merger sales agreement. For example, this type of contract must include a complete listing of inventory and the names of the owners and businesses. It is essential to outline the way in which a firm will conduct business before closing and the extent to which each firm has access to financial data.

Moreover, make sure you take a careful look at broker fees, adjustments and other matters related to the sales agreement when preparing the document.

The importance of an effective sales agreement

When creating a sales agreement, it is pivotal to make sure that you cover every base. For example, omitting liabilities or assets could result in serious challenges later on, such as a costly and time-consuming dispute. In fact, such a dispute could surface after the merger completion date, which underlines the significance of a detailed and thorough contract.

With an effective sales agreement in place, you can go ahead with the successful closing of an acquisition or merger.


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