Business succession in the framework of asset sales and purchases takes place when a company acquires the assets of another to continue its activities. In Spain, Article 44 of the Workers’ Statute outlines labour and social security obligations of employers and protection measures for workers involved in this process.
Mariscal & Abogados advises the British distributor RFMW of radio frequency and microwave products on the acquisition transaction of the Spanish company Spantech Technology Solutions.
The use of representation and warranties insurance (R&W) is becoming more and more frequent in Spain in the field of the purchase and sale of companies. The premiums increase, costs reduction or process simplification are some of the reasons for their growth.
After carrying out the corresponding due diligence process to analyse the accounting, fiscal and legal situation of a business, it is vital to formalize the purchase and sale through the most appropriate legal instrument according to the characteristics of the project.
The main instruments for acquiring companies are the purchase and sale of shares and participations and the purchase and sale of company assets. The choice of each of them has its advantages and disadvantages, and entails different legal consequences.
Compared to 2013, in 2014, the number of mergers and acquisitions in Spain grew to 54%. The principle factors that have motivated this growth are the improvement of the economy and the increase of foreign investment in Spain. For 2015, this upward trend is expected to continue.