Startup Funding Espresso Key Elements of a Purchase Agreement
Key Elements of a Purchase Agreement Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In selling your business, the purchase agreement outlines the key terms. It\u2019s important to review it carefully.\xa0\xa0 Here are some points to consider when evaluating a purchase agreement: Check the definitions section to understand what the key terms mean. Review the price and how payment will be made.\xa0 There may be price adjustments impacting the price such as working capital requirements. Review the warranties and representations section carefully for what you are representing about your business. Review the indemnification clause which states what happens if the warranties and representations are not met. Consider the termination provisions which state what conditions cancel the deal. Typically, there are fees associated with a breakup. The closing conditions list the requirements for what must be met to consummate the transaction. Finally, the covenants section outlines what each party must do during the transaction process.\xa0\xa0 Review each of these sections carefully as they impact the completion of the buyout. \xa0 Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. Let\u2019s go startup something today. _______________________________________________________ For more episodes from Investor Connect, please visit the site at: \xa0 Check out our other podcasts here: \xa0 For Investors check out: \xa0 For Startups check out: \xa0 For eGuides check out: \xa0 For upcoming Events, check out \xa0\xa0 For Feedback please contact info@tencapital.group\xa0\xa0\xa0 Please , share, and leave a review. Music courtesy of .