Share Purchase Agreement: Buying and Selling Company Shares
A share purchase agreement (SPA) is a contract between a buyer and a seller of company shares. It sets out the terms and conditions of the sale, including the purchase price, the payment terms, and the closing date. SPAs are typically used when a buyer is purchasing a controlling stake in a company, or when a company is being sold to another company. However, SPAs can also be used for smaller transactions, such as when a minority shareholder is selling their shares. Key terms of an SPA: Purchase price: The purchase price is the amount of money that the buyer will pay for the shares. Payment terms: The payment terms specify how and when the buyer will pay the purchase price. Closing date: The closing date is the date on which the sale of the shares will be completed. Representations and warranties: The seller will make representations and warranties about the company and its shares. These representations and w...