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Acquisition Agreement

This document outlines the terms and conditions for the acquisition of a target company or assets by an acquiring company. It is used to formalize the agreement between the buyer and seller, detailing the sale price, payment terms, warranties, and other crucial provisions for a business acquisition.

Updated 15d ago
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Company Letterhead

{{company_name}}

{{company_address}}

Phone: {{phone}}

Email: {{email}}

Website: {{website}}

ACQUISITION AGREEMENT

This Acquisition Agreement ("Agreement") is made and entered into on this {{day}} day of {{month}}, {{year}},

BETWEEN:

{{seller_company_name}}, a company duly incorporated and existing under the laws of {{seller_jurisdiction}}, with its registered office at {{seller_address}} (hereinafter referred to as "the Seller");

AND

{{buyer_company_name}}, a company duly incorporated and existing under the laws of {{buyer_jurisdiction}}, with its registered office at {{buyer_address}} (hereinafter referred to as "the Buyer").

The Seller and the Buyer are hereinafter collectively referred to as "the Parties" and individually as "a Party".

1. DEFINITIONS AND INTERPRETATION

1.1. In this Agreement, unless the context otherwise requires, the following terms shall have the meanings ascribed to them below:

"Acquired Assets" means all assets, properties, and rights of the Seller being acquired by the Buyer as described in Schedule A hereto.

"Effective Date" means the date first written above.

"Purchase Price" means the total consideration payable by the Buyer to the Seller for the acquisition of the Acquired Assets.

"Transaction Documents" means this Agreement and all other documents, agreements, and instruments executed in connection herewith.

1.2. Clause headings are for convenience only and shall not affect the interpretation of this Agreement.

2. ACQUISITION OF ASSETS

2.1. The Seller hereby agrees to sell, assign, transfer, and deliver to the Buyer, and the Buyer hereby agrees to purchase and acquire from the Seller, all of the Acquired Assets, free from all encumbrances, liens, or charges whatsoever, on the terms and conditions set forth in this Agreement.

2.2. The acquisition shall be effective as of the Effective Date.

3. PURCHASE PRICE AND PAYMENT TERMS

3.1. The total Purchase Price for the Acquired Assets shall be {{purchase_price_currency}} {{purchase_price_amount}} ({{purchase_price_words}}).

3.2. The Purchase Price shall be payable by the Buyer to the Seller as follows:

{{down_payment_percentage}}% ({{down_payment_percentage_words}} percent) non-refundable deposit of {{down_payment_amount}} payable on the Effective Date.

The balance of {{balance_payment_amount}} payable on the Closing Date (as defined below).

3.3. All payments shall be made by electronic funds transfer to an account designated by the Seller.

4. REPRESENTATIONS AND WARRANTIES

4.1. The Seller hereby represents and warrants to the Buyer that:

The Seller has full corporate power and authority to enter into and perform its obligations under this Agreement.

The Acquired Assets are free and clear of any encumbrances, liens, or charges, and the Seller has good and marketable title to the Acquired Assets.

There are no legal actions, suits, or proceedings pending or, to the Seller's knowledge, threatened against the Seller concerning the Acquired Assets.

4.2. The Buyer hereby represents and warrants to the Seller that:

The Buyer has full corporate power and authority to enter into and perform its obligations under this Agreement.

The execution and delivery of this Agreement will not violate any provision of the Buyer's constitutional documents or any agreement to which the Buyer is a party.

5. CLOSING

5.1. The closing of the acquisition contemplated by this Agreement (the "Closing") shall take place on or before {{closing_date}} at {{closing_time}} at the offices of {{closing_location}}, or such other date, time, and place as the Parties may mutually agree.

5.2. At the Closing, the Seller shall deliver to the Buyer all necessary documents and instruments to transfer title to the Acquired Assets, including but not limited to, bills of sale, assignments, and certificates of title.

5.3. At the Closing, the Buyer shall deliver the balance of the Purchase Price to the Seller.

6. INDEMNIFICATION

6.1. The Seller shall indemnify and hold harmless the Buyer from and against any and all losses, damages, liabilities, costs, and expenses (including reasonable attorneys' fees) arising out of or in connection with:

Any breach of any representation or warranty made by the Seller in this Agreement.

Any breach of any covenant or agreement made by the Seller in this Agreement.

Any liabilities of the Seller not expressly assumed by the Buyer under this Agreement.

6.2. The Buyer shall indemnify and hold harmless the Seller from and against any and all losses, damages, liabilities, costs, and expenses (including reasonable attorneys' fees) arising out of or in connection with:

Any breach of any representation or warranty made by the Buyer in this Agreement.

Any breach of any covenant or agreement made by the Buyer in this Agreement.

7. GOVERNING LAW AND DISPUTE RESOLUTION

7.1. This Agreement shall be governed by and construed in accordance with the laws of {{governing_jurisdiction}}.

7.2. Any dispute, controversy, or claim arising out of or relating to this Agreement, or the breach, termination, or invalidity thereof, shall be settled by arbitration in accordance with the rules of the {{arbitration_institution}}.

7.3. The seat of the arbitration shall be {{arbitration_city}}, {{arbitration_country}}.

7.4. The language of the arbitration shall be English.

8. ENTIRE AGREEMENT

8.1. This Agreement constitutes the entire agreement between the Parties concerning the subject matter hereof and supersedes all prior agreements, understandings, negotiations, and discussions, whether oral or written, between the Parties.

8.2. No amendment, modification, or waiver of any provision of this Agreement shall be effective unless in writing and signed by all Parties.

9. NOTICES

9.1. All notices and other communications hereunder shall be in writing and shall be deemed to have been duly given when delivered personally, sent by registered mail, or transmitted by email to the addresses set forth below:

To the Seller:

Address: {{seller_notice_address}}

Email: {{seller_notice_email}}

To the Buyer:

Address: {{buyer_notice_address}}

Email: {{buyer_notice_email}}

10. SIGNATURES

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date.

SELLER:

_____________________________

By: {{seller_signatory_name}}

Title: {{seller_signatory_title}}

Date: {{seller_signature_date}}

BUYER:

_____________________________

By: {{buyer_signatory_name}}

Title: {{buyer_signatory_title}}

Date: {{buyer_signature_date}}

WITNESSES:

1. Name: {{witness1_name}}

Signature: ______________________

Address: {{witness1_address}}

2. Name: {{witness2_name}}

Signature: ______________________

Address: {{witness2_address}}

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