Document background
The Buy Out Agreement is a crucial document used in business acquisitions and corporate restructuring in India. It is typically employed when one party wishes to acquire complete ownership of a business, whether through asset purchase or share transfer. The agreement must comply with Indian legal framework, including the Companies Act 2013, Income Tax Act 1961, and other relevant regulations. It contains detailed provisions covering the transaction structure, purchase consideration, conditions precedent, representations and warranties, indemnities, and post-closing obligations. This document is essential for both domestic and cross-border transactions, requiring careful consideration of regulatory requirements, foreign investment laws (if applicable), and tax implications. The agreement serves as the primary document governing the relationship between the buyer and seller throughout the transaction process and often includes provisions for post-completion arrangements.
