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Entity Purchase Buy Sell Agreement for the United Kingdom

Entity Purchase Buy Sell Agreement Template for England and Wales

An Entity Purchase Buy Sell Agreement under English and Welsh law is a comprehensive legal document that governs the sale and purchase of an entire business entity. This agreement outlines the terms and conditions of the transaction, including purchase price, payment terms, warranties, representations, and post-completion obligations. It provides legal protection for both buyer and seller while ensuring compliance with UK company law, tax regulations, and other relevant legislation.

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What is a Entity Purchase Buy Sell Agreement?

The Entity Purchase Buy Sell Agreement is a crucial document used in business acquisitions and sales within England and Wales. It sets out the complete framework for transferring ownership of a business entity, including detailed provisions for valuation, payment terms, warranties, and post-completion obligations. This agreement is essential for protecting both parties' interests and ensuring regulatory compliance with UK legislation. It typically includes comprehensive due diligence findings, risk allocation mechanisms, and specific provisions for business continuity.

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

1. Parties: Identification and details of all parties to the agreement

2. Background: Context and purpose of the agreement, including details of the target entity

3. Definitions: Key terms used throughout the agreement

4. Sale and Purchase: Core transaction terms including purchase price, payment mechanisms, and details of assets/shares being transferred

5. Completion: Mechanics and timing of the transaction completion, including completion deliverables

6. Warranties: Seller's representations about the business, its assets, liabilities, and operations

7. Indemnities: Specific protections against identified risks and liabilities

8. Limitations on Liability: Caps, thresholds, and time limits on warranty and indemnity claims

9. Tax Covenant: Specific provisions dealing with tax liabilities and indemnities

10. Boilerplate: Standard contractual provisions including governing law, jurisdiction, and notices

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

1. Pre-completion Conditions: Conditions that must be satisfied before completion, such as regulatory approvals or third-party consents

2. Post-completion Obligations: Ongoing obligations after completion, including earn-out provisions and transitional arrangements

3. Non-compete Provisions: Restrictions on seller's future activities to protect the purchased business

4. Price Adjustment: Mechanisms for adjusting the purchase price based on completion accounts or other criteria

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

1. Schedule 1 - Completion Obligations: Detailed list of actions and deliverables required at completion

2. Schedule 2 - Warranties: Comprehensive list of warranties about the business and its operations

3. Schedule 3 - Properties: Details of all real estate owned or leased by the target entity

4. Schedule 4 - Intellectual Property: Schedule of IP rights owned or licensed by the target entity

5. Schedule 5 - Material Contracts: List of key business contracts and their material terms

6. Schedule 6 - Employees: Details of employees, including key terms of employment and benefits

7. Schedule 7 - Tax Covenant: Detailed tax indemnity provisions and specific tax warranties

8. Schedule 8 - Completion Accounts: Format and preparation requirements for completion accounts

Authors

Alex Denne

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

Jurisdiction

England and Wales

Publisher

Genie AI

Document Type

Sale Agreement

Cost

Free to use
Relevant legal definitions








































Clauses



































Industries

Companies Act 2006: Primary legislation governing company operations including share transfers, directors' duties, corporate governance requirements, and share capital regulations

Financial Services and Markets Act 2000: Regulates financial services activities and financial promotions in relation to business transfers and acquisitions

Enterprise Act 2002: Covers competition law considerations and merger control provisions for business acquisitions

Corporation Tax Act 2010: Key tax legislation governing corporate tax implications of business transfers

Taxation of Chargeable Gains Act 1992: Regulates tax treatment of capital gains arising from business and asset sales

Value Added Tax Act 1994: Governs VAT implications in business transfers and asset sales

Stamp Duty Land Tax Act 2003: Covers tax obligations related to property transfers within business sales

Transfer of Undertakings (Protection of Employment) Regulations 2006: Protects employees' rights during business transfers (TUPE regulations)

Employment Rights Act 1996: Fundamental employment legislation affecting staff transfers in business sales

UK GDPR: Data protection regulations governing personal data transfers in business acquisitions

Data Protection Act 2018: UK's implementation of data protection requirements, relevant for information transfers in business sales

Competition Act 1998: Ensures fair competition and regulates anti-competitive practices in business transfers

Bribery Act 2010: Anti-corruption legislation relevant to business transactions and due diligence

Money Laundering Regulations 2017: Regulations to prevent money laundering in business transactions

Modern Slavery Act 2015: Requires consideration of human rights and modern slavery issues in business transfers

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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