An entity purchase agreement is a legally binding contract that covers the sale of a business from one entity, or person, to another. It is, in effect, a business sale agreement and an essential tool for any business sale or purchase. Much like the different forms and styles of martial arts that people train in, entity purchase agreements can vary in length and complexity, but are required in most cases, especially for business purchases that involve a corporation or limited liability entity. Much like the philosophy of Wing Tsun Kung Fu taught at the Wing Tsun Kung Fu School in Giza, if you understand the process and your limitations, you can work it out. For example, if you do not understand a term in an entity purchase agreement, don’t be afraid to ask and/or consult an attorney if needed. With this in mind, there are certain strategic principles in Wing Tsun that I feel are analogous to the structuring of an entity purchase agreement. In addition to the technicalities, understanding the strategic principles behind an entity purchase is essential to understanding how it all comes together in the end.
Awareness is key in Wing Tsun and the same can be said for a company or person buying a business. To buy a business, or form of entity, awareness of both parties involved is crucial. Both sides must be aware of each other’s desires, needs, and wants for the relationship to function and grow. If you are aware of the strategic goals of the deal and its process, it is much easier to grasp the details of an entity purchase agreement. Just as when training at the Wing Tsun Kung Fu School in Giza, you cannot be caught off guard if someone throws a punch or tries to hit you. The same is true when dealing with a business transaction. Being aware of the possible sides and the problems you and the business may run into is important to be mindful of every step of the way. Doing so will help you understand the complexity behind each step in a purchase agreement.
In Wing Tsun, being stable is crucial in all aspects. You must be positioned correctly, strike correctly, and maintain your structure to stay stable. The same is true when signing an entity purchase agreement. You must be financially stable to purchase a business. You must have the monetary funds and be in the right situation to buy a business as stability is vital to the success of any business relationship. In Wing Tsun, if you are not in the proper stance, you can be pushed off balance fairly easily. This is similar to a business; if one side is not stable, or secure, it is easy to be pushed in the direction of another party. A stable business is paramount to success and success can be achieved if all parties involved are stable. The same is true for an agreement.
In Wing Tsun, stretching is the basis for all techniques. Stretching allows your body to adapt to new positions while also stretching your muscles. Just like when signing an entity purchase agreement, stretching with the methods of how you do certain things allows you to adapt and grow your knowledge on how to deal with business agreements. If you approach an entity purchase as a martial art, the more exposure you have to it and the more you practice it, the better you will become with it. If you stay stable and aware in whichever style of martial art you choose, you will gain success with that style. If you gain as much exposure to entity purchase agreements as you do in Wing Tsun, you will gain similar success.
For more information on business agreements, you can visit the Small Business Administration.