Purchase Agreement

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What It Means

A Purchase Agreement, sometimes called a definitive agreement, is a legal document that details the terms and conditions involved in the transfer of ownership in a company or its assets. There are two common form of Purchase Agreement depending on the type of transaction:

Why It’s Important

.Generally, Buyers prefer an Asset Purchase and Sellers prefer a Stock Purchase, but each type of purchase has its own set of advantages and disadvantages that should weigh in to the value of the overall acquisition structure.

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