What is a Shared Purchase Agreement (SPA)?
A Share Purchase Agreement (SPA) is a legally binding contract that outlines the terms and conditions for the sale and purchase of shares in a company. The SPA represents the final outcome of negotiations, detailing key commercial elements such as the purchase price, payment terms, and any specific conditions related to the sale. Once both parties agree to and sign the SPA, the payment is made, and legal ownership of the asset is formally transferred to the buyer.
What is included in an SPA?:
- Purchase price
- Shares being sold
- Details of both the buyer and the seller
- Obligations of both parties
- Payment terms
- Closing date
- Representations and warranties
- Indemnities
- Covenants
- Confidentiality
- Dispute resolution
