Operational Implications in Purchase Agreements
We’ve all heard and said the expression, “The devil is in the details.” This article addresses two types of complexity associated with stock purchase agreements. First, we’ll cover some risks in a contract where the purchase price is contingent upon future business performance. Second, we’ll address some issues regarding related party transactions where the stock purchase is for less than a controlling interest, and the stock purchaser is subject to the control of the majority holders.