An Introduction to M&A Purchasing Agreements


Merger and acquisition (M&A) purchasing agreements are complicated documents with potentially a lot of moving parts. While every M&A purchase agreement is different, it’s helpful to have an overview of them so you aren’t surprised when selling your business in Washington, DC or anywhere in the USA.


What’s Inside M&A Purchasing Agreements

M&A purchase agreements have a number of components. There are definitions and executive provisions to representatives. Beyond that, you’ll find warranties, indemnifications, and schedules. Interim and post-closing agreements are all covered as well, along with closing conditions and even break-up fees.


Advice for Sellers

Negotiating a purchase agreement can be time consuming and stressful. But it doesn’t end with the negotiation process – you must also finalize that agreement. All that time means you as a business owner can potentially be stretched too thin. You need to be concentrating on running the business, not just on selling it. It’s all too easy to let the business suffer during the selling process. That’s why it’s such a good idea to work with a proven business broker team so all the weight doesn’t fall on your shoulders.

Any serious buyer is going to look at your business’ financial statements very closely. That means your financial house must be in order, and you must transparently disclose everything to the buyer. That’s also hard work, and it’s another good reason to work with experienced professionals who can walk you through the complex process of selling a business.


Use Trusted Experts

When you’re down to the nitty gritty of the deal, you need an experienced negotiator in your corner. You need someone who knows what they are doing, and can see potential problems before they even come up. Further, it’s vital that they understand that the purchase price is only one factor in the deal. The terms and protections are equally important.


To sum it up, working with a business broker is a good idea. Brokers understand the complexities of M&A purchasing agreements. They know how to help put your financials in order. Finally, they are your secret weapon negotiators when it comes down to finalizing the deal. Selling your business is likely to be the most important business decision you’ll ever make. That’s why it’s vital to find the right broker to help guide you. Contact our Washington, DC office or any of our offices across the nation and see why CGK Business Sales is the broker for you.


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