CABB APA any good?

by a searcher

3 years ago

Has anyone used the California Association of Business Brokers Asset Purchase Agreement as a starting template for a CA acquisition? Is it comprehensive, will it help save legal costs?

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professional from Marquette University

The reps and warranties, among other things, tend to need a lot of lawyering with the standard agreements like from the CABB. I've had deals where the buyer's lawyer said it would be less expensive to draft a new agreement than edit the template. Get a good legal opinion on the template.

3 years ago | like reply | 0 likes

searcher from Harvard University - Harvard Business School

You'll still need a lawyer involved. They should have access to a template like this to start from and/or their own templates from prior work, so I'm not sure it will save much time to give it to them. Asking them to use this may also be different from what the lawyer has worked with and is comfortable with from prior work (e.g. if paragraphs are not completely industry standard your counsel is now going to have to re-read, understand, and tweak a PA that they may be unfamiliar with which could end up taking more time than what they might have started from)

I'm not a lawyer so take my advice with a grain of salt...!

3 years ago | like reply | 0 likes

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