Stock Purchase Agreement Texas

If your company sells shares to raise money, attract employees or grow the business, a share purchase agreement is essential. If you are in the initial phase of the letter of your business plan for a new business or if you have a start-up that needs investors, a share purchase contract is required to continue selling shares. It can be an excellent tool for companies that offer stock options and ensure that shares can be redeemed by the company if an employee does not stay with the company. For example: a company has a four-year blocking plan. An employee decides to resign after two years of employment. The company has the right to buy back the stock from the employee. This encourages employees to stay for a set period of time and also gives them an interest in the company`s success. The more successful the company, the more its shares increase. Buying or selling a business is a serious business that must be carried out correctly the first time. Errors in judgment and botched work can be costly, so it is important to provide advice from an experienced lawyer who knows what to look for and how to structure the agreement – so that you come out of the conclusion of the transaction with the financial benefits and control you seek and minimize with your future legal risks, if possible. Shares of a company are often sold to raise money or other agreed compensation. Small businesses and start-ups can also offer shares in the company as an employee benefit or the founders of the company may hold shares.

The agreement itself sets the price per share and the amount of shares acquired. If you buy or sell a business, you can buy or sell shares in the business, or you can buy or sell the company`s assets. There are reasons to take any route. One way or another, you should know exactly what you are buying or, if you are the seller, you need to know what you are receiving from the buyer, when and how you will be compensated and what commitments or problems you inherit. All these questions beg me for intelligent and thorough legal aid. The reality is that if you sell shares in your company, there is no scenario in which it is a good idea not to create a share purchase contract.

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