Share Purchase Agreement Strategic Considerations

Selling Your Canadian Business · Aug 29, 2025 · 17m

In a Canadian business share sale, the Share Purchase Agreement (SPA) is the cornerstone document that formalizes the transfer of shares from the seller to the buyer, detailing critical terms such as purchase price, representations and warranties, indemnities, conditions precedent, and post-closing obligations. The Letter of Intent (LOI), typically non-binding except for provisions like confidentiality or exclusivity, precedes the SPA and outlines key deal terms, serving as a framework for negotiations. In an auction process, where multiple suitors compete, a pivotal decision for sellers and…