A comprehensive disclosure letter from seller to buyer in a company sale transaction
The Seller Disclosure Letter typically includes details about the company's financial status, legal matters, intellectual property, contracts, and employment issues. It serves as the seller’s formal declaration of all known facts that might affect the value or operation of the business post-sale.
By providing a comprehensive disclosure, the seller seeks to protect themselves from future claims of misrepresentation or non-disclosure. This document is generally drafted after negotiation and before the sale agreement is finalized, helping to establish trust and transparency between both parties.
A Seller Disclosure Letter is primarily used by the seller in a company sale transaction in the UK. It accompanies the sale agreement to disclose specific information that might affect the company's valuation or the buyer's decision to purchase.
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