8Insurance Business Review Nov - Dec 2022By Mike Strakhov, Senior Vice President - Head of Insurance Lending, Live Oak BankDuring the sale of an investment advisory firm or insurance agency, both the seller and buyer must follow a certain legal process. After signing a letter of intent and completing due diligence, a business purchase agreement marks the official start to the legally binding transaction of a business. This agreement requires the buyer to purchase the business according to the terms and price outlined in the agreement. These documents can be lengthy and full of legalese, which is why an experienced attorney should create the purchase agreement.Purchase agreements are complex but typically have several standard sections. The biggest takeaway on purchase agreements is this: while it's ideal to let an attorney handle the terms and conditions it's not a bad idea to have a general understanding of each section, as we've outlined below. Both parties should understand what they're signing, so leverage the professional team of your firm or agency to help you translate some of the legal jargon and technical language.THE BASICS OF A BUSINESS PURCHASE AGREEMENTIN MY OPINION
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