Standardization of a share purchase agreement (SPA)
for small and mid-cap transactions
A team of experts (e.g. inhouse legal departments, law firms, banks, legal designers, universities) aims to create a widely accepted Standard SPA for small- and mid-size private M&A transactions. Above all, such a Standard SPA template will provide a generic document structure and basic T&Cs. Additionally, it will provide guidance on relevant aspects of the M&A transaction. These include a fair and balanced allocation of risks and responsibilities.
A Standard SPA will allow one to execute transactions faster, more effectively and in a digital negotiation & execution environment. Instead of arguing over the “best” template, the team can focus completely on the specifics of the transaction.
Initially in a new transaction, the parties of an M&A transaction might agree to the use the publicly available Standard SPA. Furthermore, one could use the template for future automation scenarios, e.g. a Common Legal Platform or other collaboration tools.
LLI representatives and a designated project resource from Deloitte are heading this project. The team is carrying out the initiative in the following five phases: