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Entity Purchase Agreement
"I need an Entity Purchase Agreement for acquiring a medium-sized New Zealand technology company, with completion scheduled for March 2025, including standard warranties and a 12-month earn-out provision based on EBITDA targets."
1. Parties: Identification of the seller(s) and purchaser(s), including full legal names and addresses
2. Background: Context of the transaction, including brief description of the target entity and transaction rationale
3. Definitions and Interpretation: Definitions of key terms used throughout the agreement and rules of interpretation
4. Sale and Purchase: Core transaction terms including what is being sold (shares/units) and agreement to sell and purchase
5. Purchase Price: Specification of purchase price, payment terms, and any price adjustment mechanisms
6. Conditions Precedent: Conditions that must be satisfied before completion can occur
7. Pre-completion Obligations: Obligations of parties between signing and completion, including conduct of business requirements
8. Completion: Mechanics of completion, including timing, location, and actions required
9. Warranties: Seller's warranties regarding the entity, business, and transaction
10. Limitations on Claims: Limitations on warranty claims including time limits, thresholds, and caps
11. Tax Indemnity: Specific indemnities relating to tax matters
12. Confidentiality: Obligations regarding confidential information
13. Announcements: Requirements for public announcements about the transaction
14. General Provisions: Standard boilerplate provisions including notices, amendments, governing law
1. Earn-out Provisions: Used when part of purchase price is contingent on future performance
2. Employee Matters: Required when specific arrangements for employees need to be addressed
3. Intellectual Property: Needed when IP is a significant component of the business
4. Real Property: Required when the entity owns or leases significant real estate
5. Environmental Matters: Important for businesses with environmental risks or compliance requirements
6. Competition/Non-solicitation: Used when restraints on seller's future activities are required
7. Transitional Services: Needed when seller will provide services post-completion
8. Break Fee: Used in larger transactions to provide compensation if deal fails
9. Guarantees: Required when parent company or personal guarantees are needed
1. Details of the Entity: Corporate information, shareholding structure, and subsidiaries
2. Warranties: Detailed warranties about the business, assets, and liabilities
3. Properties: Details of owned and leased properties
4. Material Contracts: List and details of key contracts
5. Intellectual Property: Schedule of IP rights owned or licensed
6. Employees: Key employee information and employment terms
7. Completion Obligations: Detailed list of documents and actions required at completion
8. Form of Resignation Letters: Template resignation letters for outgoing directors
9. Permitted Leakage: List of permitted value extractions in locked box deals
10. Working Capital Statement: Format and rules for working capital calculations
11. Tax Deed: Detailed tax indemnity provisions
12. Disclosure Letter: Exceptions and qualifications to warranties
Authors
Financial Services
Manufacturing
Technology
Retail
Healthcare
Professional Services
Real Estate
Energy
Agriculture
Mining
Construction
Transport and Logistics
Media and Entertainment
Education
Hospitality
Legal
Finance
Corporate Development
Mergers & Acquisitions
Tax
Risk & Compliance
Strategy
Business Development
Integration
Executive Leadership
Company Secretariat
Treasury
Chief Executive Officer
Chief Financial Officer
Corporate Lawyer
General Counsel
Managing Director
Finance Director
Company Secretary
Corporate Development Manager
M&A Director
Integration Manager
Due Diligence Manager
Transaction Manager
Investment Banker
Business Development Director
Risk Manager
Tax Director
Commercial Director
Strategy Director
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