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Entity Buy Sell Agreement for Philippines

Entity Buy Sell Agreement Template for Philippines

A comprehensive legal document governed by Philippine law that facilitates the sale and purchase of a business entity. This agreement outlines all essential aspects of the transaction, including the purchase price, payment terms, representations and warranties, conditions precedent, and closing requirements. It incorporates relevant provisions from the Corporation Code of the Philippines, tax regulations, and other applicable laws, ensuring compliance with local legal requirements while protecting both parties' interests in the transaction.

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What is a Entity Buy Sell Agreement?

The Entity Buy Sell Agreement is a crucial document used in Philippine business transactions when one party wishes to acquire a business entity from another. This comprehensive agreement is structured to comply with Philippine corporate and commercial laws, including the Corporation Code, Securities Regulation Code, and relevant tax regulations. It details all aspects of the transaction, from purchase price and payment terms to representations and warranties, while addressing specific requirements of Philippine jurisdiction such as mandatory government approvals and foreign ownership restrictions where applicable. The agreement is particularly important as it provides legal protection for both parties and ensures a clear framework for the transfer of ownership, assets, and liabilities.

What sections should be included in a Entity Buy Sell Agreement?

1. Parties: Identification of the seller(s) and buyer(s), including complete legal names and addresses

2. Background: Context of the transaction, description of the business entity being sold, and purpose of the agreement

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

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

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

6. Conditions Precedent: Conditions that must be satisfied before closing

7. Pre-Closing Covenants: Obligations of parties between signing and closing

8. Closing: Mechanics of closing, including timing, location, and deliverables

9. Warranties and Representations: Seller's and buyer's warranties about the business and their capacity to enter into the agreement

10. Indemnification: Provisions for compensation in case of breach or losses

11. Confidentiality: Obligations regarding confidential information

12. Tax Matters: Allocation of tax liabilities and responsibilities

13. Governing Law and Dispute Resolution: Choice of Philippine law and dispute resolution mechanisms

14. General Provisions: Standard boilerplate clauses including notices, amendments, and severability

What sections are optional to include in a Entity Buy Sell Agreement?

1. Employee Matters: Include when the transaction involves transfer of employees

2. Intellectual Property: Include when significant IP assets are involved in the sale

3. Real Estate: Include when the business owns or leases significant real property

4. Environmental Matters: Include for businesses with environmental compliance obligations

5. Government Approvals: Include when regulatory approvals are required

6. Non-Competition: Include when restricting seller's future competitive activities

7. Transition Services: Include when post-closing assistance from seller is required

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

What schedules should be included in a Entity Buy Sell Agreement?

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

2. Schedule of Excluded Assets: List of assets specifically excluded from the sale

3. Schedule of Assumed Liabilities: Detailed list of liabilities being assumed by buyer

4. Schedule of Excluded Liabilities: List of liabilities specifically excluded from assumption

5. Schedule of Material Contracts: List of important contracts being transferred

6. Schedule of Intellectual Property: Detailed list of IP rights included in the sale

7. Schedule of Real Property: Details of owned or leased real estate

8. Schedule of Employees: List of employees and their key employment terms

9. Schedule of Permits and Licenses: List of governmental permits and licenses

10. Disclosure Schedule: Exceptions to warranties and representations

11. Closing Checklist: List of all documents and actions required for closing

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Philippines

Publisher

Ƶ

Document Type

Buy-Sell Agreement

Sector

Sales

Cost

Free to use
Relevant legal definitions













































Clauses







































Relevant Industries

Manufacturing

Retail

Technology

Real Estate

Healthcare

Financial Services

Professional Services

Construction

Agriculture

Energy

Telecommunications

Transportation

Hospitality

Education

Mining

Relevant Teams

Legal

Finance

Corporate Development

Mergers & Acquisitions

Tax

Compliance

Risk Management

Corporate Secretariat

Executive Leadership

Board of Directors

Relevant Roles

Chief Executive Officer

Chief Financial Officer

General Counsel

Corporate Secretary

Managing Director

Business Development Director

Finance Director

Legal Counsel

Compliance Officer

Tax Director

Mergers & Acquisitions Manager

Corporate Development Manager

Risk Manager

Board Member

Company Director

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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