Business Acquisitions: Signing and Closing

Business Acquisitions: Signing and Closing

The final phase of an acquisition is where the deal becomes reality: terms are finalized, contracts are signed, and ownership of the target company formally transfers from seller to buyer. At this stage, both legal and financial details must be carefully reviewed and managed to ensure a smooth completion. Key steps typically include:

Final negotiations

In the last round of discussions, any outstanding issues are resolved and the parties confirm their agreement on all terms. It is essential to ensure that no misunderstandings remain before contracts are finalized.

Review of agreements

All key documents are carefully reviewed before signing. These may include the Share Purchase Agreement (SPA), Shareholders’ Agreement (SHA), financing agreements, employment contracts, and other legal documents. A thorough review ensures that all rights and obligations are clear and agreed upon by both parties.

Legal compliance

Before closing, it must be confirmed that all legal requirements are satisfied. This may involve obtaining permits and approvals, verifying regulatory compliance, and ensuring no legal obstacles remain. Legal advisors play a central role in making sure the transaction meets all formal requirements.

Signing

Once all documents have been agreed and reviewed, the parties formally sign the agreements. Signing marks the binding legal commitment to complete the transaction and represents the shift from negotiation to execution.

Closing

Closing is the official transfer of ownership from seller to buyer. On this day, the purchase price is paid and any ancillary agreements — such as shareholder or employment contracts — are executed.

In some transactions, signing and closing take place simultaneously. In others, closing may be deferred until specific pre-closing obligations are fulfilled, regulatory approvals are obtained, or purchase price mechanisms are finalized.

At FLB Partners, we support clients through every stage of the acquisition process — from strategy to integration. Contact us today to discuss how we can help ensure your next acquisition is completed successfully.