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.
Due Diligence Basics: What North Carolina Buyers and Sellers Need to Know
Due diligence is the investigative process that happens after a letter of intent is signed but before the purchase agreement is finalized and the deal closes. The buyer is given access to information about the business so they can confirm what they are buying, identify any problems, and make informed decisions about whether and how to proceed.
