What to include in a business sales contract?

Don’t run into trouble selling your business. Learn what to include in a comprehensive business sales contract.

It can be bittersweet to sell a business you put your heart and soul into, but you can also make a lot of money. Selling a business involves many documents and one of the most important is a business contract of sale. Here we will explore what to cover when selling your business.

Name the parties.

Clearly state the names and locations of the buyer and seller. You must also include the exact name and address of the business you are selling.

List the assets.

Provide a detailed description of each physical, financial and intangible asset affected by the change in ownership. This list can include buildings, vehicles, machinery, furniture, cash, bank accounts, company name, intellectual property, and more.

Define obligations.

Carefully describe any obligations the buyer assumes as part of the transaction. These can be, for example, taxes owed, debts and loans.

Set terms of sale.

Determine how the buyer will pay for the sale, how many payment terms are involved, when they will transfer the money, and any other financial details. Also include any brokers and a clause on how to resolve payment disputes.

Add other appointments.

Business sales contracts often contain many other agreements, such as nondisclosure or non-compete clauses. Describe each of them in your contract. You should also include a disclosure agreement in which both parties disclose any factors that could hinder the sale, such as debts or pending lawsuits.

Make your purchase agreement digital.

Digital business sales agreements are faster and easier to process than paper ones because you can share them instantly and always track their status. Plus, you can sign them anywhere with a secure and legally binding e-signature.

With Adobe Sign, you can share contracts with multiple recipients, request and track signatures, sign documents on any device, and more with one click of the mouse.

Find out more Sign can do to facilitate the sale of your business.