Standardization of a share purchase agreement (SPA)
Why We Do It
The “Standardization of Share Purchase Agreement (SPA)” project is a collaborative effort led by a team of experts, including in-house legal departments, law firms, banks, legal designers, and universities. The primary goal is to establish a widely accepted Standard SPA tailored for small- and mid-size private M&A transactions. This standardized template will introduce a generic document structure along with basic terms and conditions, offering comprehensive guidance on crucial aspects of M&A transactions. Notably, it aims to ensure a fair and balanced allocation of risks and responsibilities, streamlining the transaction process.
How We Do It
The initiative is spearheaded by representatives from the Liquid Legal Institute (LLI) and a designated project resource from Deloitte. The project unfolds through a systematic approach encompassing five phases. The team’s efforts focus on creating a Standard SPA that facilitates faster, more efficient transactions within a digital negotiation and execution environment.
By providing a universally accepted template, the project aims to eliminate disputes over the “best” template, enabling transaction parties to concentrate entirely on the specifics of the deal. The envisaged applicability of the template extends to future automation scenarios, such as integration with a Common Legal Platform or other collaborative tools. In essence, the project aims to enhance the effectiveness and standardization of SPA processes in the realm of private M&A transactions.