As an entrepreneur, you want relevant and practical transaction documentation that covers the most important parts of a deal in the most advantageous way to you. You do not want contracts of interminable length or incomprehensible paragraphs about situations you are never going to encounter in practice anyway.
Types of transaction documentation
Matters that require clear agreements in the purchase agreement include the following:
- How can buyers lodge a complaint about something that was explained sufficiently in the due diligence investigation?
- Are sellers allowed to withhold information deliberately?
- How can we calculate an EBITDA after integration for the purpose of an earn-out payment?
- Has enough security been arranged if I. as a buyer, want to submit a claim under the guarantees?
- Is the seller allowed to compete with me, as the buyer, immediately after the takeover?
Transaction documentation may also include a shareholders’ agreement in the event of joint ventures, bank guarantees, escrow agreements, subordinated loans, continuing service contracts and management agreements.
Ploum can provide you with legal assistance
At Ploum, our legal specialists can advise you on working out the deal clearly and concisely on paper. We will clearly set out the aims of the parties concerned in the transaction documentation, and we will also ensure that this documentation contains suitable answers to any questions you may have concerning certain situations after the transaction.