Strategies for Negotiating Share Purchase Agreements in Singapore
For Share Purchase Agreement Singapore, being able to negotiate effectively and maximize value from the share purchase agreement (SPA) is critical for buyers and sellers. Here are useful strategies:
Conduct Thorough Due Diligence
Comprehensive legal, financial and commercial due diligence strengthens the negotiating hand by uncovering risks to factor in or cover via SPA clauses.
Get Specialist Lawyers Involved Early
Expert lawyers assist in navigating deal complexities, providing market norms on terms, and shrewd drafting/negotiation to advance your interests.
Maintain Alternatives
Having alternative deal options builds leverage and weakens the counterparty's position during SPA talks. But avoid overplaying your hand.
Link to Business Deal Rationale
Tie negotiations back to the underlying business merits and financials. This grounds discussions when stuck on legalities.
Manage Response Times
Prompt turnaround on queries and contract markups portrays confidence and keeps momentum. But don't be pressured into rushed decisions.
Anticipate Counterparty Needs
Considering the counterparty's pressures and objectives enables intuitive navigation of negotiable points and trade-offs.
Drive Outcome, Not Ego
Detach negotiations from ego or righteousness. Prioritize the commercial outcome over winning on every point.
Deploy Strategic Communication
Softer communication focused on interests rather than inflexible positions aids consensus building. Know when to hold firm tactically.
With astute SPA negotiation, buyers and sellers can achieve optimal terms, risk protection and value from share acquisitions in Singapore.