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Buy Sell Agreement Business for the United States

Buy Sell Agreement Business Template for United States

A Buy Sell Agreement Business is a legally binding contract governed by U.S. federal and state laws that establishes the terms and conditions for the sale and purchase of a business or business interests. This comprehensive document outlines the purchase price, payment terms, representations and warranties, conditions precedent to closing, and post-closing obligations. It provides protection for both buyers and sellers while ensuring compliance with applicable regulations and tax requirements.

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What is a Buy Sell Agreement Business?

A Buy Sell Agreement Business is essential when transferring ownership of a business in the United States. This document is commonly used in mergers and acquisitions, succession planning, or when partners wish to exit a business. It covers crucial elements including valuation methods, payment structures, representations and warranties, and risk allocation between parties. The agreement must comply with both federal and state laws, including securities regulations, tax laws, and industry-specific requirements. It serves as the primary document governing the transaction and protecting all parties' interests.

What sections should be included in a Buy Sell Agreement Business?

1. Parties: Identifies all parties to the agreement, including their legal names and addresses

2. Background/Recitals: Sets forth the context and purpose of the agreement

3. Definitions: Defines key terms used throughout the agreement

4. Purchase and Sale: Details the core transaction, including what is being bought/sold

5. Purchase Price and Payment Terms: Specifies the price and payment structure

6. Closing: Details the closing process and requirements

7. Representations and Warranties: Statements of fact and assurances from both parties

8. Covenants: Ongoing obligations of the parties

9. Termination: Conditions and process for terminating the agreement

10. General Provisions: Standard legal provisions including governing law, notices, etc.

What sections are optional to include in a Buy Sell Agreement Business?

1. Earn-out Provisions: Used when part of purchase price is contingent on future performance

2. Employee Matters: Addresses treatment of employees post-transaction

3. Tax Matters: Specific tax treatment and allocations

4. Intellectual Property: Special provisions for IP transfer and protection

What schedules should be included in a Buy Sell Agreement Business?

1. Disclosure Schedules: Detailed disclosures related to representations and warranties

2. Asset Schedule: Detailed list of assets being transferred

3. Assumed Liabilities Schedule: List of liabilities being assumed by buyer

4. Excluded Assets Schedule: List of assets explicitly excluded from the transaction

5. Key Contracts Schedule: List of material contracts being transferred

6. Purchase Price Allocation: Breakdown of purchase price allocation for tax purposes

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

United States

Publisher

Ƶ

Cost

Free to use
Clauses






























Industries

Internal Revenue Code: Federal tax laws governing the tax implications of business sales and transfers, including capital gains, income tax, and transfer tax considerations

Securities Exchange Act: Federal law governing the trading of securities, relevant if the business sale involves regulated securities or public company shares

Uniform Commercial Code (UCC): Standardized set of business laws governing commercial transactions in the United States

Federal Antitrust Laws: Laws preventing monopolistic practices and ensuring fair competition, particularly relevant for larger business sales

ERISA: Employee Retirement Income Security Act - relevant if the business sale affects employee benefits or ownership structures

State Corporate Laws: State-specific regulations governing corporation formation, operation, and dissolution

State LLC Laws: State-specific regulations governing Limited Liability Companies, if the business is structured as an LLC

State Partnership Laws: State-specific regulations governing partnerships, if the business is structured as a partnership

State Contract Laws: State-specific laws governing the formation and enforcement of contracts

State Securities Laws: State-specific regulations (Blue Sky Laws) governing securities transactions within the state

State Tax Laws: State-specific tax regulations affecting business sales and transfers

Industry-Specific Regulations: Regulations specific to the business's industry that may affect the sale or transfer

Business Licensing Requirements: Local and state requirements for business licenses and permits that may need to be transferred or reissued

Corporate Governance Rules: Rules governing company management, shareholder rights, and decision-making processes

Successor Liability Laws: Laws governing the transfer of liabilities and obligations to the purchasing entity

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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