Chapter 15
Documenting the Final Deal: The Purchase Agreement
IN THIS CHAPTER
Putting the final purchase agreement together
Examining the parts of a purchase agreement
Looking at important representations, schedules, and exhibits
Concurrent with conducting due diligence (see Chapter 14), Buyer and Seller draft a purchase agreement to memorialize the deal. Although most documents during the M&A process are nonbinding (that is, generally unenforceable in a court of law), the purchase agreement is a final, binding document.
Exciting, isn’t it?
In this chapter, I introduce you to the purchase agreement, what to watch for while writing and reviewing it, and what you should leave to your lawyer.
Drafting the Deal
The purchase agreement is the final, binding contract between Buyer and Seller. In layman’s terms: This is the deal. In written ...
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In most cases, the purchase agreement passes the baton from the investment banker, who negotiated the business deal, to the lawyer, who settles all the nits and gnats of the legal issues. Find a good attorney; you’re going to have to trust that person!