When is a stock purchase agreement a good idea?
In contrast to an asset purchase agreement, the purchaser who uses a stock purchase agreement in their acquisition of a new business takes the company as a whole. In a stock purchase transaction, the purchaser does not have the choice of excluding assets or liabilities that could be unnecessary or burdensome.
Now, a stock purchase transaction is not always a bad method for purchasing a business. For example, when a business is built on intellectual property a stock purchase may be the only way to buy the business while keeping the intellectual property assets together with the optimized process that makes it profitable.
Benefits of a Stock Purchase Agreement
- Documents the sale to avoid ambiguity as to who purchased shares.
- If drafted correctly, can be recorded to give notice to all of the sale.
- Can potentially be used during litigation regarding proof of the transaction.
How long does it take to create a custom Stock Purchase Agreement in Acquisitions?
Approximately 1-2 business days*
*Depending on Specifications
Why our firm to produce your custom Stock Purchase Agreement in Acquisitions?
If you are in the business of looking for a new company to purchase and think a stock purchase is the method that best fits your needs let the attorneys at SG Law Group review and draft your next deal.
Hire an affordable, professional Attorney to properly merge your business or acquire another business Today!