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Business Purchase Agreement Form Template for Saudi Arabia

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Key Requirements PROMPT example:

Business Purchase Agreement Form

"I need a Business Purchase Agreement Form for acquiring a manufacturing company in Riyadh for SAR 15 million, with completion planned for March 2025; the agreement should include provisions for machinery transfer and existing supply contracts."

Document background
The Business Purchase Agreement Form is a critical legal document used in Saudi Arabia when one entity wishes to acquire another entity's business operations, assets, or shares. This document must comply with Saudi Arabian commercial law, including the Companies Law (Royal Decree No. M/3 of 2015) and relevant Ministry of Commerce regulations. It is essential for documenting the terms of business acquisitions, protecting both parties' interests, and ensuring proper transfer of ownership in accordance with local regulations. The agreement typically includes detailed provisions for asset transfer, employee considerations, regulatory compliance, and post-completion obligations, while incorporating necessary Shariah-compliant structures where required.
Suggested Sections

1. Parties: Identification of the seller and purchaser, including full legal names, commercial registration numbers, and authorized representatives

2. Background: Context of the transaction, brief description of the business, and purpose of the agreement

3. Definitions: Detailed definitions of key terms used throughout the agreement

4. Sale and Purchase: Core transaction terms including the business assets being sold and purchased

5. Purchase Price: Details of the consideration, payment terms, and any adjustments

6. Conditions Precedent: Prerequisites that must be satisfied before completion

7. Completion: Process and requirements for closing the transaction

8. Seller's Warranties: Representations and warranties regarding the business, assets, and compliance with Saudi law

9. Purchaser's Warranties: Representations and warranties from the purchaser, including capacity to purchase

10. Business Assets: Detailed description of assets included in the sale

11. Employees: Treatment of employees and compliance with Saudi Labor Law

12. Restrictive Covenants: Non-compete and non-solicitation provisions compliant with Saudi law

13. Confidentiality: Obligations regarding confidential information

14. Governing Law and Jurisdiction: Confirmation of Saudi law as governing law and jurisdiction for disputes

15. General Provisions: Standard boilerplate clauses adapted for Saudi law

Optional Sections

1. Intellectual Property: Required when IP assets are a significant part of the business being transferred

2. Real Estate: Required when the business includes owned or leased property

3. Environmental Matters: Required for businesses with environmental compliance obligations

4. Data Protection: Required when the business processes personal data

5. Foreign Investment Provisions: Required when the purchaser is a foreign entity

6. Shariah Compliance: Required when specific Shariah-compliant structures are needed

7. Transitional Services: Required when the seller will provide post-completion services

8. Zakat and Tax Provisions: Required when specific tax structures or indemnities are needed

Suggested Schedules

1. Business Assets Schedule: Detailed inventory of all assets included in the sale

2. Excluded Assets Schedule: List of assets specifically excluded from the sale

3. Employee Schedule: List of employees and their key employment terms

4. Real Estate Schedule: Details of owned and leased properties

5. Intellectual Property Schedule: List of all IP rights being transferred

6. Material Contracts Schedule: Key contracts being transferred with the business

7. Completion Requirements Schedule: Detailed list of completion deliverables

8. Purchase Price Adjustment Schedule: Methodology for any post-completion price adjustments

9. Form of Transfer Instruments: Templates for various transfer documents required under Saudi law

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions



















































Clauses















































Relevant Industries

Manufacturing

Retail

Technology

Healthcare

Construction

Professional Services

Hospitality

Real Estate

Transportation

Energy

Telecommunications

Financial Services

Education

Industrial

Trading

Food and Beverage

Relevant Teams

Legal

Finance

Corporate Development

Mergers & Acquisitions

Compliance

Risk Management

Strategy

Operations

Business Development

Investment

Due Diligence

Corporate Secretariat

Relevant Roles

Chief Executive Officer

Chief Financial Officer

General Counsel

Legal Director

Corporate Lawyer

Business Development Director

Mergers & Acquisitions Manager

Commercial Director

Finance Manager

Compliance Officer

Company Secretary

Operations Director

Risk Manager

Investment Manager

Strategy Director

Due Diligence Specialist

Industries









Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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