Detailed explanation of the core terms of the equity transfer contract and risk tips

Share transfer contracts should cover the transfer price, payment method, closing arrangements, representations and warranties, tax allocation, and share delivery conditions.

Due diligence in investment and M&A covers legal, financial, and operational aspects, including target company qualifications, assets, contracts, employees, and litigation status.

The share transfer price and payment method are core commercial terms. Common payment methods include lump-sum payment, installment payment, and valuation adjustment mechanism payments.

Representations and warranties clauses protect the buyer by requiring the seller to warrant the truthfulness of the company's status. Breach of representations triggers liability.