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Buyout Agreement for Philippines

Buyout Agreement Template for Philippines

A comprehensive legal document governed by Philippine law that outlines the terms and conditions for the purchase and sale of a business or its assets. This agreement details the purchase price, payment terms, warranties, representations, and obligations of both the buyer and seller. It incorporates specific requirements under Philippine corporate law, including necessary approvals from the Securities and Exchange Commission where applicable, and addresses tax implications under Philippine tax regulations. The document includes provisions for transfer of assets, assumption of liabilities, employee matters, and post-completion obligations, all structured to comply with Philippine legal requirements.

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What is a Buyout Agreement?

The Buyout Agreement serves as the primary transaction document for business acquisitions in the Philippines, whether for share purchases or asset transfers. It is essential when one party wishes to acquire ownership of a business from another party, requiring careful consideration of Philippine corporate law, tax regulations, and securities laws. The document typically becomes relevant during mergers and acquisitions, business succession planning, or corporate restructuring. It must address specific Philippine legal requirements, including those under the Corporation Code and Securities Regulation Code, particularly regarding share transfers, corporate approvals, and regulatory compliance. The agreement should be comprehensive enough to cover all aspects of the transaction while being tailored to the specific circumstances of the buyout, including provisions for due diligence findings, warranties, and indemnities.

What sections should be included in a Buyout Agreement?

1. Parties: Identification of all parties involved in the buyout, including seller(s), buyer(s), and any guarantors

2. Background: Context of the transaction, including brief history of the business and reason for the buyout

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

4. Sale and Purchase: Core terms of the buyout, including what is being sold and purchased

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

6. Completion: Timing and mechanics of the completion process

7. Seller's Warranties: Warranties given by the seller regarding the business, assets, and liabilities

8. Buyer's Warranties: Warranties given by the buyer regarding capacity to complete the purchase

9. Pre-Completion Obligations: Obligations of both parties before completion, including business conduct requirements

10. Post-Completion Obligations: Obligations after completion, including transition arrangements

11. Confidentiality: Provisions regarding confidential information and announcements

12. Governing Law and Jurisdiction: Specification of Philippine law as governing law and jurisdiction details

13. General Provisions: Standard boilerplate provisions including notices, amendments, and severability

What sections are optional to include in a Buyout Agreement?

1. Employee Matters: Specific provisions regarding employees and employment contracts, used when staff transfer is involved

2. Intellectual Property: Detailed IP provisions, used when significant IP assets are involved

3. Real Property: Specific provisions for real estate assets, used when property transfers are part of the buyout

4. Environmental Matters: Environmental warranties and indemnities, used for businesses with environmental risks

5. Tax Covenant: Detailed tax provisions and allocations, used for complex tax situations

6. Non-Competition: Restrictions on seller's future business activities, used when competitive risks exist

7. Earn-out Provisions: Structure for additional payments based on future performance, used in performance-based deals

8. Third Party Consents: Provisions regarding required third-party approvals, used when significant contracts require consent

What schedules should be included in a Buyout Agreement?

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

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

3. Properties: Details of any real estate included in the sale

4. Intellectual Property Rights: List of all IP rights included in the sale

5. Employee Information: Details of employees and their employment terms

6. Material Contracts: List and details of key contracts being transferred

7. Completion Requirements: Detailed list of documents and actions required at completion

8. Warranties: Detailed warranties given by the seller

9. Disclosed Matters: Details of matters disclosed against the warranties

10. Purchase Price Adjustments: Detailed mechanics for any price adjustment

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

Philippines

Publisher

Genie AI

Document Type

Buy-Sell Agreement

Sector

Sales

Cost

Free to use
Relevant legal definitions












































Clauses










































Relevant Industries

Manufacturing

Retail

Technology

Professional Services

Real Estate

Healthcare

Hospitality

Construction

Agriculture

Financial Services

Transportation

Energy

Mining

Telecommunications

Education

Relevant Teams

Legal

Finance

Corporate Development

Mergers & Acquisitions

Tax

Compliance

Risk Management

Corporate Secretariat

Business Development

Executive Leadership

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Managing Director

Corporate Lawyer

Legal Counsel

Business Development Manager

Finance Director

Mergers & Acquisitions Manager

Company Secretary

Risk Manager

Compliance Officer

Tax Director

Board Member

Investment Manager

Corporate Development Officer

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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