Stock Purchase Agreements

A Stock Purchase Agreement (SPA) is a legal contract between a buyer and a seller regarding the purchase of shares in a company. In the context of mergers and acquisitions, it outlines the terms of the sale, including the price, payment method, and any conditions that must be met before the sale is finalized. The SPA also includes representations and warranties, where the seller confirms certain facts about the company, and may address issues such as indemnification, which protects the buyer against potential losses after the sale. Essentially, it serves to formalize the transaction and protect both parties' interests.