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KEY CONTRACTS
FOR SELLING AN
E-COMMERCE
BUSINESS
PREPARED BY
QUIETLIGHTBROKERAGE.COM
KEEP IT SIMPLE,
STUPID!
Contracts should create a framework
to complete your deal.
They should define exactly what is
being sold
They should help resolve any disputes
Q U I E T L I G H T B R O K E R A G E , I N C
THE
LETTER OF
INTENT
(ORLOI)
Q U I E T L I G H T B R O K E R A G E , I N C
LETTER OF
INTENT
Provides a framework for the entire
transaction.
Temporary agreement (usually 1-2 months)
If your deal closes, this is replaced by other,
permanent contracts
ASSET
PURCHASE
AGREEMENT
Q U I E T L I G H T B R O K E R A G E , I N C
ASSET PURCHASE
AGREEMENT
General Buy/Sell Agreement
Coordinates all additional permanent
agreements
This is the primary agreement and the
most important to get right.
PROMISSORY
NOTE
Q U I E T L I G H T B R O K E R A G E , I N C .
PROMISSORY
NOTE
Only required if the seller is financing part of
the purchase price
Should directly reference the purchase
agreement
For e-commerce businesses, a personal
guarantee is standard
ASSET
ALLOCATION
AGREEMENT
Q U I E T L I G H T B R O K E R A G E , I N C .
ASSET
ALLOCATION
Determines how both buyer and seller
will report acquisition to IRS
Purchase price is split up among
different assets
Most will be allocated towards
'goodwill'
NON-
COMPETE
AGREEMENT
PREPARED BY
ATTY. G.E. CLAYTON
Q U I E T L I G H T B R O K E R A G E , I N C .
NON
COMPETE
Length of non-compete should mirror
purchase price (e.g. paid 3 years
worth of earnings -> 3 year NCA
Scope of agreement can be defined
(e.g. "can't sell hats" vs. "can't sell
baseball caps")
BILL
OF
SALE
Q U I E T L I G H T B R O K E R A G E , I N C .
BILL OF
SALE
Acts as a 'receipt' showing finality of
purchase
Protects against claims of
insufficient assets or non-delivery
A FEW
FINAL NOTES
Q U I E T L I G H T B R O K E R A G E , I N C .
FINAL
THOUGHTS
Every deal is unique. You may need
documents not listed here.
Always check with your attorney.

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Contracts Used When Selling Your Internet Business

  • 1. KEY CONTRACTS FOR SELLING AN E-COMMERCE BUSINESS PREPARED BY QUIETLIGHTBROKERAGE.COM
  • 2. KEEP IT SIMPLE, STUPID! Contracts should create a framework to complete your deal. They should define exactly what is being sold They should help resolve any disputes Q U I E T L I G H T B R O K E R A G E , I N C
  • 4. Q U I E T L I G H T B R O K E R A G E , I N C LETTER OF INTENT Provides a framework for the entire transaction. Temporary agreement (usually 1-2 months) If your deal closes, this is replaced by other, permanent contracts
  • 6. Q U I E T L I G H T B R O K E R A G E , I N C ASSET PURCHASE AGREEMENT General Buy/Sell Agreement Coordinates all additional permanent agreements This is the primary agreement and the most important to get right.
  • 8. Q U I E T L I G H T B R O K E R A G E , I N C . PROMISSORY NOTE Only required if the seller is financing part of the purchase price Should directly reference the purchase agreement For e-commerce businesses, a personal guarantee is standard
  • 10. Q U I E T L I G H T B R O K E R A G E , I N C . ASSET ALLOCATION Determines how both buyer and seller will report acquisition to IRS Purchase price is split up among different assets Most will be allocated towards 'goodwill'
  • 12. Q U I E T L I G H T B R O K E R A G E , I N C . NON COMPETE Length of non-compete should mirror purchase price (e.g. paid 3 years worth of earnings -> 3 year NCA Scope of agreement can be defined (e.g. "can't sell hats" vs. "can't sell baseball caps")
  • 14. Q U I E T L I G H T B R O K E R A G E , I N C . BILL OF SALE Acts as a 'receipt' showing finality of purchase Protects against claims of insufficient assets or non-delivery
  • 16. Q U I E T L I G H T B R O K E R A G E , I N C . FINAL THOUGHTS Every deal is unique. You may need documents not listed here. Always check with your attorney.