Share Sales and Acquisitions Specialist legal advice on share sales and acquisitions from lawyers in Milton Keynes

As well as carrying out due diligence, the buyer will be protected by clauses and warranties (a type of promise) in the share purchase agreement.

At Heald Solicitors in Milton Keynes, our corporate team have extensive experience in representing both sellers and buyers of shares in businesses across a range of sectors. We can demystify the process and will advise you of the documentation needed to ensure that your rights and interests are safeguarded as far as possible.

Due diligence in share sales and acquisitions

Before entering into an agreement to buy shares, the purchaser and their legal team will carry out due diligence enquiries to investigate the state of the business. This includes going through the financial and legal information that has been provided in detail as well as looking at the liabilities and any disputes that the company may be involved in.

The seller and their legal team will be responsible for disclosing relevant and accurate information and responding to any enquiries the buyer raises.

The share purchase agreement

The agreement for the sale of shares will include a number of key clauses, including the following:

• Warranties that the information provided is correct;
• Indemnities in respect of anticipated future losses or liabilities such as customer claims, unpaid tax or litigation relating to an event before the date of the share purchase;
• Restrictive covenants, for example, stating that the seller will not set up a rival business nearby or poach clients or customers from the company.