Share Purchase Agreement

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. This crucial document details key aspects such as the number of shares being transferred, the agreed-upon purchase price, and the payment schedule. Beyond these fundamental financial terms, an SPA typically includes comprehensive representations and warranties from both the buyer and the seller, covering aspects like the company’s financial health, assets, liabilities, and legal standing. It also specifies conditions precedent to closing, indemnities for breaches of contract, and provisions for dispute resolution. Executing a well-drafted SPA is essential to protect the interests of both parties and ensure a smooth and transparent transaction in a corporate acquisition or divestment.