Purchase Agreements

Overview

Purchase Agreements are the binding legal documents that govern a business acquisition. They include the Asset Purchase Agreement (APA) or Stock Purchase Agreement (SPA), along with associated schedules, exhibits, and ancillary documents. Honor Financial provides the financial analysis and deal structuring expertise that supports the drafting of these agreements, working closely with legal counsel to ensure the financial terms accurately reflect the negotiated deal.

When It's Needed

Purchase Agreements are prepared after the LOI has been executed and due diligence is substantially complete. They represent the final, binding terms of the transaction and are signed at closing.

What We Deliver

• Financial structuring support for purchase price mechanics
• Working capital peg and adjustment calculations
• Earn-out and contingent consideration modeling
• Sources and uses of funds documentation
• Support for representations and warranties (financial sections)
• Closing and post-closing financial reconciliation support

Who Benefits

• Buyers and sellers finalizing transaction terms
• Attorneys drafting definitive agreements
• Lenders requiring documentation for closing conditions