As the owner of an accounting practice, you may be considering selling your business. It`s a big decision, and one that requires a well-written and carefully drafted purchase agreement. A purchase agreement outlines the terms and conditions of the sale, ensuring that both parties understand their roles and responsibilities throughout the process.
To help you get started, we`ve put together a sample accounting practice purchase agreement. This agreement covers the most important aspects of the sale and can be customized to fit your specific needs.
Introduction
The purchase agreement begins with an introduction that outlines the purpose of the agreement. In this section, you will want to include the names of the buyer and seller, the date of the agreement, and a brief description of the accounting practice being sold.
Purchase Price and Payment Terms
The purchase price is the amount that the buyer will pay for the accounting practice. This section should outline the agreed-upon purchase price, as well as the payment terms. This can include the total amount of the purchase, any down payment required, and the payment schedule.
Assets and Liabilities
In this section, you will want to outline the assets and liabilities being transferred as part of the sale. This can include equipment, inventory, customer lists, accounts receivable, and any outstanding debts or liabilities.
Representations and Warranties
Representations and warranties are statements made by the seller about the condition of the business. This section should outline the seller`s representation that the accounting practice is in good standing, that all financial statements are accurate, and that there are no outstanding legal or tax issues.
Closing Conditions
Closing conditions outline the steps required to finalize the sale. This can include obtaining any necessary licenses or permits, ensuring that all outstanding debts are paid, and transferring ownership of any relevant assets.
Confidentiality and Non-Disclosure
Confidentiality and non-disclosure clauses are critical to ensuring that sensitive information about the business does not fall into the wrong hands. This section outlines the terms of confidentiality and non-disclosure agreements, including the types of information to be kept confidential and the penalties for violating the agreement.
Dispute Resolution
In the event of a dispute, this section outlines the steps that the parties will take to resolve the issue. This can include arbitration, mediation, or taking legal action.
Conclusion
A well-written purchase agreement is essential when selling an accounting practice. By including all of the necessary details and provisions, you can ensure that both parties understand their roles and responsibilities throughout the sale process. The sample accounting practice purchase agreement provided here can serve as a starting point for creating your own customized agreement.