During the sale, a number of documents will be drawn up including Heads of Agreement, Legal Sale and Purchase Agreement.
These can seem complicated, but these documents all form part of the legal sale process and will include information on the business i.e. the sector in which it operates, how long and where it has been trading and if transference of employees is to be included. The documents can also include information on the business premises, any financial implications on rent and rates and the financial reports of the business including visibility on profit and loss, cashflows, asset values and debts. Purchase Offers and Payment Terms will also include exclusivity and confidentiality agreements.
The practice of Due Diligence will also be carried out. The term Due Diligence relates to the searches performed to ensure all legal, commercial and financial implications relating to the sale have been covered.