Mergers and acquisitions of companies, known by the acronym M&A., is a corporate economic strategy. Mergers between business entities assuming the termination of investee companies and the transmission of their assets to a new entity – merger for a new creation – or for an existing one– merger through absorption.

09 2023 Business succession Spain

Business succession in the sale and purchase of assets in Spain

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.

11 2022 Clauses of the business purchase agreement

Essential content in a business purchase agreement

The drafting of the business agreement is a fundamental step in the sale of businesses because it contains the elements that will define the development of the transaction and its success. Are you aware of the clauses to include?

Representations and warranties insurance

Advantages and disadvantages of representations and warranties insurance

The contracting of representations and warranties insurance is an option that has been increasing during the last years in the framework of M&A operations. This is due to the great advantages it offers for both parties, although there are also some drawbacks that need to be kept in mind.

seguro y garantías sociedades

Representations and warranties insurance in the purchase and sale of companies in Spain

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.

share purchase agreement

Clauses and content of the Share Purchase Agreement

The Share Purchase Agreement (SPA) is one of the most used contracts in Spain for the purposes of acquiring a mercantile company. Its basic content should include some clauses or contractual promises about the company (warranties) which will bind both parties for the transaction’s success.

letter of intent

The letter of intent in the context of M&A transactions in Spain

The letter of intent is a written document that serves as a starting point for mergers and acquisitions. Among the most common main clauses are included the terms of the transaction, the exclusivity, the confidentiality and the legal audit.


Practical guide on the Share Purchase Agreement

The contract of the sale of shares or Share Purchase Agreement, is one of the most useful contracts in the practice of acquiring mercantile companies. It consists of four main phases: the contract of confidentiality, the letter of intent, the due diligence procedure and the signing of the contract of the sale of shares.


The Share Purchase Agreement: Signing and Closing

The purchase agreement of corporate shares or holdings is a document that establishes conditions that will govern the transfer of the company and it applies to all forms of non-listed companies.

Phases of the process of acquiring a company

Investment in Spain through acquiring shareholdings in a Spanish company requires a series of steps in order to ensure the successful conclusion of the transaction. These are, in brief: the letter of intent, the due diligence process, the signing of the purchase/sale agreement, the closure of the transaction and the closing operations, or post-closing of the transaction.

Taxation on the transfer of branches of activity

Although the sale of assets is generally subject to Value Added Tax (IVA) and Capital Transfer and Stamp Tax (ITPyAJD), the transfer of a complete branch of activity or business in Spain has flexible taxation.