The Small Business Transfer Agreement is essential when transferring ownership of a small business in England and Wales. It's designed to protect both buyer and seller by clearly documenting the terms of sale, including asset valuation, employee transfers, intellectual property rights, and ongoing obligations. This agreement is particularly crucial for ensuring compliance with UK business transfer regulations, including TUPE provisions and data protection requirements. It's commonly used for businesses with annual turnover below £10 million and fewer than 50 employees, though these thresholds are flexible.
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1. Parties: Details of the seller and buyer
2. Background: Context of the transaction and business being transferred
3. Definitions: Key terms used throughout the agreement
4. Sale and Purchase: Core transaction terms and purchase price
5. Completion: Transfer timing and mechanics
6. Warranties: Seller's assurances about the business
7. Indemnities: Specific protection against identified risks
1. Property Transfer: Provisions for transfer of real estate assets when business premises are included in sale
2. Intellectual Property: Provisions for transfer of IP rights when business owns significant intellectual property
3. Employee Provisions: Specific TUPE arrangements and employee transfer provisions when staff are transferring
4. Post-Completion Obligations: Ongoing commitments after sale including non-compete and transition services
1. Asset Register: Comprehensive list of all tangible and intangible assets being transferred
2. Employee Information: Details of transferring employees including terms of employment and benefits
3. Property Details: Information about any real estate included in the transfer
4. Intellectual Property Register: Detailed list of all IP rights being transferred including registrations and applications
5. Contracts Schedule: List of key contracts being transferred including customer and supplier agreements
Relevant legal definitions
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