Representations and Warranties: Protecting Yourself in Business Sales
When a seller signs a purchase agreement, they are making binding statements about the business. Those statements form part of the foundation the buyer is relying on to close the deal and pay the purchase price. If those statements turn out to be false, the consequences can be significant. It is common for the seller’s owners to make those representations and warranties personally.
Purchase Agreement Essentials: Key Terms You Need to Understand
The purchase agreement is the document that makes a business sale real. It is where the deal gets reduced to binding obligations, and where the negotiated details get locked in as enforceable terms. For buyers and sellers alike, understanding what should be in a purchase agreement, and what to watch out for, is essential before you sign anything.
Asset Purchase vs. Stock Purchase: Which is Right for Your Deal?
If you are buying or selling a business in North Carolina, one of the first and most consequential decisions you will face is how the deal is structured. Are you buying the assets of the business, or are you buying the business itself? These are not just technical distinctions. They determine who takes on existing liabilities, how the transaction is taxed, and what the buyer actually ends up owning when the deal closes.
