The sale or acquisition of a business is a major strategic transaction, the success of which depends on a thorough understanding of the legal, financial, and operational risks involved. Beyond the negotiated price, an M&A transaction is, above all, an exercise in allocating risks among the parties. Proper preparation and methodical structuring are essential to ensure the stability and longevity of the agreement.
This article outlines the fundamental principles governing this type of transaction, which should guide any sale or acquisition process.
The Contract : A Tool for Protection and Risk Management
A business sale contract is never limited to setting a price. Its primary purpose is to allocate two key risks :
