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Business Transfer Agreement Template for Denmark

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Business Transfer Agreement

Document background
The Business Transfer Agreement is a crucial document used in Danish corporate transactions when one entity wishes to transfer ownership of a business to another entity. It is particularly relevant for asset-based business sales where the transaction involves the transfer of business assets rather than shares. The agreement must comply with Danish legislation, including the Danish Companies Act, Transfer of Undertakings Act, and other relevant regulations. It typically includes detailed provisions covering the scope of transfer, purchase price mechanisms, treatment of employees, warranties, and post-completion obligations. This type of agreement is essential for ensuring a clear legal framework for the transaction and protecting both parties' interests while ensuring compliance with Danish legal requirements.
Suggested Sections

1. Parties: Identification of the seller and buyer, including full legal names, registration numbers, and addresses

2. Background: Context of the transaction, brief description of the business being transferred, and purpose of the agreement

3. Definitions: Definitions of key terms used throughout the agreement

4. Sale and Purchase: Core transaction terms defining what is being sold and purchased

5. Purchase Price: Details of the purchase price, payment terms, and any adjustments

6. Assets: Specification of assets included in the transfer

7. Excluded Assets: Clear identification of assets excluded from the transfer

8. Liabilities: Assignment and assumption of liabilities, including excluded liabilities

9. Employees: Treatment of employees, transfer terms, and compliance with Danish Transfer of Undertakings Act

10. Conditions Precedent: Conditions that must be satisfied before completion

11. Pre-Completion Obligations: Parties' obligations between signing and completion

12. Completion: Mechanics and requirements for closing the transaction

13. Seller's Warranties: Warranties given by the seller regarding the business

14. Buyer's Warranties: Warranties given by the buyer

15. Tax Matters: Tax treatment, allocations, and indemnities

16. Confidentiality: Obligations regarding confidential information

17. Announcements: Requirements for public announcements about the transaction

18. Governing Law and Jurisdiction: Specification of Danish law as governing law and jurisdiction for disputes

Optional Sections

1. Post-Completion Adjustments: Used when the final purchase price depends on completion accounts or other post-completion calculations

2. Intellectual Property: Detailed section required when IP assets are a significant part of the business

3. Real Estate: Required when the business transfer includes property interests

4. Environmental Matters: Necessary for businesses with environmental risks or compliance requirements

5. Non-Competition: Required when restricting seller's future competitive activities

6. Transition Services: Used when seller will provide services to buyer post-completion

7. Data Protection: Detailed section required when significant personal data is involved

8. Pensions: Required when pension schemes are being transferred

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

10. Break Fee: Optional provisions for payment if transaction fails to complete

Suggested Schedules

1. Assets Schedule: Detailed list of all assets included in the transfer

2. Excluded Assets Schedule: Detailed list of assets explicitly excluded from the transfer

3. Employee Schedule: List of transferring employees and their key employment terms

4. Properties Schedule: Details of any real estate included in the transfer

5. Intellectual Property Schedule: List of all IP rights being transferred

6. Material Contracts Schedule: Key contracts being transferred

7. Completion Requirements: Detailed list of documents and actions required at completion

8. Warranties Schedule: Detailed seller's warranties

9. Disclosed Matters: Information disclosed against the warranties

10. Working Capital Statement: Target working capital calculation and adjustment mechanics

Authors

Relevant legal definitions
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Relevant Industries
Relevant Teams
Relevant Roles
Industries










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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