Buying or selling a business? It pays to agree key terms upfront
Adrenalin may be running high if you are on the verge of buying a business or selling the company you have built from scratch. You may have already sought professional advice regarding the company valuation but there are other critical issues on which advice will also be needed during those early heady days of negotiations.
To aid the smooth progress of a business sale or acquisition it is advisable to agree the key terms of the deal first, together with the mechanics of how the deal will be done. These should be set out in a heads of terms document which will act as a road map for dealing with all the stages you will need to go through to conclude the deal you have negotiated.
Heads of terms are not legally binding, but they represent an agreement in principle about how matters ought to be handled. They also demonstrate a serious commitment to commence the process as soon as possible and to ultimately conclude the transaction. DBA members can download details of the terms to be included, by viewing the guidance here.
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DBA members benefit from a free half hour of legal advice on any number of differing issues from the DBA’s legal partner Humphries Kirk. Please contact Darrell Stuart Smith at Humphries Kirk on 01305 251007, stating that you are a DBA member.
Not yet a DBA member?
If you’re not yet a DBA member and would like to benefit from the DBA’s legal helpline, as well as a wide range of other membership services and events, visit our website or call 020 7251 9229 to speak to our Head of Services, Adam Fennelow.