A purchase contract (or “offer to purchase” as it is sometimes called) is a detailed document that a buyer submits to a seller in order to purchase the seller’s business. In this document the conditions, warranties, non-compete conditions, financing, terms, inventory, training and other transition details, and other aspects of the purchase are laid out.
Your business broker will help you draft this document, and may even have a standardized version you may use to craft your own.
This contract will allow you to have access to the records and finances of the business you would like to buy during a due diligence phase that follows the initial offer. After due diligence, you will have the chance to amend your offer or back out of the deal if you choose.
Again, your business broker will be an invaluable asset during this process, as they will be able to help you decide how you should proceed.
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