Once initial negotiations have concluded the parties may wish to sign up to Heads of Agreement to set out the main provisions of the deal. The Heads of Agreement do not commit you to going through with the transaction so long as it is made clear that they are non-legally binding and that the agreed terms are subject to the conclusion of a formal contract. Other terms could be made binding, such as those relating to confidentiality, or an exclusivity period to set out the consequences of a rival bidder popping up when you have spent a great deal of time and money on negotiations.
The next stage will be to issue due diligence enquiries so that you can find out as much about the financial viability of the business before buying it. Further negotiation may become necessary as a result of the responses to the due diligence enquiries.
Alongside the due diligence request the advisors for both parties will review and negotiate the contractual documentation based upon instructions from the clients. It is not unusual that several drafts can be made before a document is settled upon.
The key document will be the sale agreement. This sets out the agreed terms of the purchase. Also included will be warranties regarding the state of the business to be purchased. See Question 4 for more detail as to warranties.
Completion is the time when the agreement for the purchase is entered into and the ownership of the business is transferred to the purchaser.
Our Business Law team can are specialised in business transactions and can guide you though the process of buying a business.
11 Dec 2018
Forbes Solicitors has advised Heart of the Lakes and Fisherbeck Management Limited as they joined forces with…
Forbes Solicitors delivers 'fast response times' and demonstrates 'impressive industry knowledge'.
2018-19 edition Legal 500
Very thorough and precise with each contract and have made it very easy for us to feel very confident going into new territories, whether it being a different country or a different manufacturer.
Forbes was instrumental in ensuring Electric Coffee Co is able to meet its growth ambitions.
Electric Coffee Co
It is always a pleasure to deal with true professionals and specialists in their area and this is what you can expect when dealing with Forbes and, in our case, specifically Nick and Gemma.
Gareth & Janet Watson
The team not only provides professional and practical advice, but also takes a personal interest to understand the business and the matter at hand.
Leonard Curtis Business Solutions Group
The advice and service that we receive from Pauline and her colleagues is consistently professional, knowledgeable and efficient. They have a great ethos and are a pleasure to work with.
Focus Insolvency Group
What a pleasure to do business with Forbes - Pauline Rigby & Nick Pickup both understood my personal objectives and requirements
Former Business Owner
I would like to thank Jayne and the Business Law team for being so friendly, professional and patient throughout the sale.
We have been very happy with the professional service from Pauline Rigby and her colleagues in the Business Law team and the ease of purchasing our new business
Andrew M Jones
Internet Trading Ltd
I and the UCLan team wanted to acknowledge the support from your team, including Nick Pickup and Pauline Rigby. Their contribution has been much appreciated by both clients and our staff.
Head of Innovation and Enterprise
Sincere thanks for all the time, patience and professionalism from Pauline and Tricia in the completion of MAP12 contract terms and conditions.
Jayne & Anthony Mellor
It's a One Stop Shop as a legal entity, whatever problem we've got you've got someone to come and advise us or fix it
The Northcote Group
We have always found Forbes to be approachable and helpful and we look forward to a continuing professional relationship
Child Action Northwest
I have been extremely pleased with the legal team at Forbes and all their help
South Lakes Veterinary Centre
The team at Forbes have been professional, thorough, friendly and efficient from day one through to completion. We will certainly be using them again as we look to move our business forward.
S & L Wilson