Phase I: Confidentiality Agreement

Signing this document gives you access to sensitive information regarding the seller and their business. It also protects the seller by ensuring you will keep information disclosed during negotiations confidential. Example

Phase 2: Preliminary Negotiations/Letter of Intent

Both parties negotiate a letter of intent, which is non-binding and forms the basis for the definitive agreement. It outlines the deal structure, the purchase price and form, payment terms and closing contingencies. Example

Phase 3: Due Diligence

During due diligence - this vitally important phase - you will examine the business background, finance, human resources, tax and legal matters.

Phase 4: Negotiation/Definitive Acquisition Agreement

There are four main sections of the Definitive Acquisition Agreement: purchase price, representations, indemnification and covenants.