An acquisition agreement is the contract that governs the purchase of one company by another or the merger of two companies. Although it’s purpose is to finalize the sale, it is not the business end of the contract. It does not only consists of what the seller promises to sell and what the buyer promises to pay, it also specifies the manner and time period of which the payment should be made. Other items such as the assumption of liabilities and postcosting adjustments are indicated.
The acquisition agreement is one of those agreements that is enforced by law; therefore, it is essential that you or a lawyer write a comprehensive and legally sound document in your order to protect your interest. Here are some sample acquisition templates that you can use to draft your own agreement. Each Agreement Template is different so that you can choose the appropriate one that suits your needs.
Share and Asset Acquisition Agreement
Finder Fee Acquistion Agreement Template
Acquistion Agreement for the Purchase of Property
Acquisition and Funding Agreement Template
Data Acquisition Agreement Template
Equipment Acquistion Agreement Template
Art Services and Acquisition Agreement Template
Joint Acquisition Agreement
Aircraft Acquisition Agreement Template
Two Forms of Acquisition Agreements
- Entity Purchase Agreement. Also referred to as stock purchase agreements, this deal is made when the buyer purchases the business entity through buying the majority of its stocks. The one with the most stocks then becomes the new owner and assumes the position of the previous ones, including their obligations and debts.
- Asset Purchase Agreement. This kind of purchase agreement happens when the buyer purchases all assets, including both tangible and intangible properties, of the business. The company’s ownership remains intact even when the business is not running anymore. That means the assets and liabilities of the previous owner do not carry on to the new owner.
Check out our Purchase Agreement Template and see which one is ideal for one of these two forms. If you’re looking for a specific type of agreement, take a look at the Standard Confidentiality Agreement.
Software Acquisition Agreement
Standard Clauses of an Acquisition Agreement
These are some of the standard clauses every acquisition agreement should have.
- Business combination. This states the legal structure, whether it’s an asset or entity purchase, of the transaction.
- Stock payment. If the payment is in the form of stocks, the exchange ratio at which the shareholders will swap their shares is stated.
- Cash payment. If the payment is in the form of cash, this clause states how the funds are going to be transferred to the shareholders.
- Debt payment. If the payment is in the form of debt, this clause states the terms of the promissory note as well as the security agreement.
- Option and warrant termination. This clause states the all the options and warrants that will be exercised and terminated prior to the acquisition.
- Representations and warranties. This clause states all the representations that the information provided by each party is true.
If you need more kinds of agreement templates, feel free to browse our website. Also, check out our Real Estate Confidentiality Agreement Template.