Tips to Find a Local M&A Law Firm in Spain

Tips to Find a Local M&A Law Firm in Spain

Tips to Find a Local M&A Law Firm in Spain

For any foreign investor looking to expand to Spain through a merger, acquisition or joint venture, hiring the services of a local M&A law firm familiar with all the ins and outs of the market is essential.

Well let’s face it, there are so many factors to be considered, including:

• What are the due diligence requirements for an acquisition in Spain?

• What are the tax implications of such a deal?

• What kind of corporate structure is advisable when creating a new venture?

• What are the regulations regarding lay-offs, if required.

Entering a new market can be challenging and it is important to ask the appropriate questions before making a final decision. One tip for selecting the right adviser is to weigh up the firm’s M&A experience, focusing on the nature of the deals and the type of industries involved.

Seeking advice from Madrid-based corporate law firm Argali Abogados can help an overseas investor evaluate an acquisition, weigh up the potential risks, and ensure all the bases are covered.

 

DUE DILIGENCE: KEY TO SUCCESS

Due diligence is a rigorous investigation carried out by a potential acquirer into a target company or its assets. It entails a detailed examination of relevant technical, legal and financial management issues. The process has become particularly important in Spain in the last few years as a slew of property, financial and industrial assets have come under the hammer due to the crisis.

Discrepancies between the buyer and seller over pricing and valuations can often block deals. A local corporate law firm is best placed to advise an overseas investor on a target business’ position in the market, its competition, its financial stability and earnings potential, and whether valuations are reasonable.

Research varies depending on the source, but between 50 and 85 per cent of all mergers are unsuccessful. Failed due diligence is often a reason.

Thorough knowledge of the tax issues involved in a corporate deal is also
crucial in M&A. Last year, the Spanish government announced major changes to corporate tax regulations with its Entrepreneurs Law. The new law is aimed at helping entrepreneurs, but has also been designed to encourage international investment by creating an attractive fiscal environment.

 

ADVANCE ADVICE ON LABOUR LAWS

A merger or acquisition can often lead to workforce reductions, so advance advice on local labour market regulations is invaluable. Spain’s labour market is undergoing a series of reforms to increase its flexibility. A local M&A law firm will have all the details of these changes at their fingertips!

And last but not least, these professionals can also advise
on the expenses involved in any merger, particularly the hidden costs related to new logos and websites.

For information on M&A in Spain, contact Argali Abogados.

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