During the due diligence process, issues may be identified by the buyer or seller that will require disclosure against specific or general warranties within the SPA. The disclosure letter plays several different roles in a transaction, it:
Other ancillary documents for a transaction may include Loan Notes for part of the consideration, or Service Agreements for directors and/or sellers remaining in the business post-sale. Service agreements can be particularly important if any sellers are remaining in the business as employees, and part of the consideration includes an earn-out.
