Business Sale Agreement for Malta

Business Sale Agreement Template for Malta

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Business Sale Agreement

"I need a Business Sale Agreement under Maltese law for the sale of my retail clothing chain with 12 employees, planned for completion by March 2025, with specific provisions for employee transfer and lease assignments for three store locations."

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What is a Business Sale Agreement?

The Business Sale Agreement is a crucial document used in Malta when transferring ownership of a business from one party to another. It is essential for transactions involving both asset sales and share transfers, ensuring compliance with Maltese corporate law, particularly the Companies Act (Chapter 386) and related regulations. This agreement is utilized when a business owner wishes to sell their entire business operation, including assets, goodwill, and sometimes employees, to a new owner. The document covers critical aspects such as purchase price, warranties, indemnities, employee transfers, and post-completion obligations. It requires careful consideration of Maltese legal requirements, including specific provisions for employee protection, data protection, and competition law compliance. The agreement serves as the primary transaction document and is typically accompanied by various ancillary documents and due diligence requirements.

What sections should be included in a Business Sale Agreement?

1. Parties: Identification of the seller and buyer, including full legal names, registration numbers, and registered addresses

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

3. Definitions and Interpretation: Definitions of key terms used throughout the agreement and rules of interpretation

4. Sale and Purchase: Core transaction terms including what is being sold and purchased

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

6. Conditions Precedent: Any conditions that must be satisfied before completion can occur

7. Pre-Completion Obligations: Obligations of both parties between signing and completion, including business conduct requirements

8. Completion: Mechanics of completion, including timing, location, and actions required

9. Seller's Warranties: Warranties given by the seller regarding the business, assets, and liabilities

10. Buyer's Warranties: Basic warranties from the buyer regarding capacity and authority

11. Limitations on Liability: Limitations on warranty claims and general liability caps

12. Post-Completion Obligations: Ongoing obligations after completion, including transitional arrangements

13. Confidentiality: Obligations regarding confidential information and announcements

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

What sections are optional to include in a Business Sale Agreement?

1. Employee Provisions: Detailed provisions regarding the transfer of employees, to be included when employees are transferring with the business

2. Intellectual Property: Specific provisions for IP transfer and protection, necessary when the business has significant IP assets

3. Property Provisions: Detailed real estate provisions, required when the business includes property assets

4. Non-Compete Provisions: Restrictions on the seller's future business activities, included when protecting goodwill is crucial

5. Tax Covenant: Specific tax indemnities and provisions, included for businesses with significant tax exposure

6. Data Protection: Specific provisions for handling personal data, required when the business processes significant personal data

7. Environmental Provisions: Environmental warranties and indemnities, needed for businesses with environmental risks

8. Earn-out Provisions: Structure for additional payments based on future performance, included when part of the price is performance-based

What schedules should be included in a Business Sale Agreement?

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

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

3. Schedule 3 - Properties: Details of any real estate included in the sale

4. Schedule 4 - Intellectual Property: List of all IP rights included in the sale

5. Schedule 5 - Employees: List of transferring employees and their key employment terms

6. Schedule 6 - Material Contracts: List of key business contracts being transferred

7. Schedule 7 - Warranties: Detailed warranties given by the seller

8. Schedule 8 - Completion Obligations: Detailed list of documents and actions required at completion

9. Schedule 9 - Permitted Encumbrances: List of permitted liens or encumbrances on the assets

10. Appendix 1 - Completion Accounts: Pro-forma completion accounts and accounting policies

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 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

Retail

Manufacturing

Professional Services

Technology

Hospitality

Healthcare

Real Estate

Construction

Financial Services

Education

Transportation

Entertainment

Agriculture

Energy

Relevant Teams

Legal

Finance

Corporate Development

Mergers & Acquisitions

Executive Leadership

Human Resources

Operations

Tax

Compliance

Risk Management

Commercial

Relevant Roles

CEO

Managing Director

Business Owner

Corporate Lawyer

Legal Counsel

CFO

Finance Director

Business Development Manager

M&A Director

Company Secretary

Operations Director

HR Director

Commercial Director

Tax Manager

Risk Manager

Compliance Officer

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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