Free Download 8+ Acquisition Agreement All Formats
Companies will need the acquisition agreement. This agreement rules the purchase between two parties whether it a company and a company, or a company with the merger of two companies. This agreement is purposed for finalizing the sale but it will not end the contract. The agreement only consists of the agreements which the seller has promised goods to sell and the buyer has promised to buy the goods. In this agreement, this also mentioned how the purchase process will be conducted including the payment process and moving the goods.
Does the acquisition agreement have law power? The answer is yes! It is enforced by the law. Therefore, when you are setting this agreement, using a lawyer to legally write it comprehensively will save you a lot. Because they can break down the details into unambiguous sentences that might put you in trouble in the future. You can learn our acquisition agreement template or sample on this page. It is free!
How Many Types of Aquisition Agreements Do We Have?
There are two types of acquisition agreements that you should know, which are:
- Entity Purchase Agreement – This is also called as the stock purchase agreement. This agreement is designed for a buyer who will buy a large entity of stocks. Therefore, the one who bought the most stock, he/she will be considered as the owner. This will also include debts and obligations.
- Asset Purchase Agreement – If a buyer purchases all of the assets, then this agreement is needed. Even though the business is not running anymore, but the owner is still intact. Therefore, the liabilities and assets will not be brought to the new owner.
What Are The Standard Clauses In The Acquisition Agreement?
Business combination – the agreement should explain the legal structure whether it is entity purchase or assets.
- Stock payment – If the payment uses the stocks, then the exchange ratio will swap their shares.
- Cash payment – But if the payment is in the form of cash, then the agreement should state how the fund will be transferred.
- Debt payment – If the debt is the payment, then the clause should talk about the promissory note and also the security agreement.
- Option and warrant termination – This clause talks about the warrants and the options will be done in the acquisition agreement.
- Representations and warranties – This includes the information provided by the parties is true.
How To Make An Acquisition Agreement?
- Use the right form – our website provides you tons of acquisition agreement templates that you can pick for free. All of the templates and samples are editable.
- Determine the price – If you have a price in mind, bring it to the paper to avoid disputes in the future. The agreement is made to make you more comfortable and selling and purchasing with the written agreement. Especially if you buy in a big stock.
- Make a deposit – Deposit can be the safest way to secure your business if you are a seller. Many sellers get scammed because they are 100% sure with their clients. They didn’t get the payment. But to make you safer, ask your clients to deposit the fund. 50% of the price will be wise.
- Disclose the downpayment – Set how the downpayment will be paid This can be stocks, promissory notes, assets, etc.
Acquisition Agreement Template Sample