Document background
The Equity Interest Purchase Agreement is a fundamental document used in Canadian M&A transactions to transfer ownership of shares or other equity interests in a company. It serves as the primary transaction document that captures all material terms and conditions of the deal, including purchase price, payment mechanisms, representations and warranties, and closing conditions. This agreement must comply with Canadian federal and provincial requirements, including corporate law, securities regulations, and tax provisions. It is particularly crucial in private company transactions where shares are not publicly traded and requires careful consideration of jurisdiction-specific elements such as compliance with the Competition Act and Investment Canada Act for larger transactions or those involving foreign buyers. The agreement typically results from extensive negotiations and due diligence, and often includes various schedules and ancillary documents to address specific aspects of the transaction.
