STATEMENT: The Català Reinón Law Firm analyzes the sale of companies

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Experts in buying and selling companies offer keys to a successful process. In a constantly evolving business market, the purchase and sale of companies is presented as a key strategy for growth and restructuring. To provide clarity and guidance on this crucial process, a group of business buying and selling experts have pooled their experience and insights to deliver the essentials.

Madrid, August 14, 2023.- The sale of companies is a strategic process in which a seller transfers ownership of his business to a buyer, who acquires the company under specific conditions and terms. This process, although complex, with the help of a Barcelona law firm being essential, can be highly beneficial for both parties if it is followed properly and the necessary precautions are taken. Next, the fundamental steps of a business sale and the key aspects that must be considered are explored, it being better to go to a law firm in Madrid.

1. Confidentiality Agreement: Before sharing sensitive information about the company, it is essential to establish a confidentiality agreement. This agreement guarantees that the information provided by the seller will be kept secret and will only be used for evaluation purposes. It protects the interests of both parties and promotes transparency in the initial stages of the process.

2. Letter of Intent: Once confidentiality is established, the letter of intent comes into play. This document reflects the buyer's interest in moving forward with the transaction and establishes the basis for future negotiations. It contains details such as the transaction schedule, exclusivity agreements and other clauses that will set the course of the conversations.

3. Due Diligence: one of the most critical aspects of buying and selling companies is the Due Diligence phase. Here, the buyer thoroughly examines all aspects of the business, from the financial and accounting part to the legal and operational part. This process allows you to assess the overall health of the business, identify potential risks, and ensure that all information provided is accurate and complete.

4. Sales Contract – Once the Due Diligence is completed and with a deeper understanding of the company, the sales contract is drawn up. This document formalizes the terms and conditions agreed between the seller and the buyer. It details aspects such as the purchase price, the seller's guarantees, payment terms and any other relevant clause.

5. Cohabitation: in cases of partial sale, where the buyer acquires a part of the business, a period of cohabitation is established. During this time, the seller and buyer work together as partners to ensure a smooth and efficient transition. During this stage, potential issues can be resolved and ensure that the business continues to operate smoothly.

6. Departure of the Seller: after the period of cohabitation, it is time for the departure of the seller. The exit mechanisms are defined in the partner agreement and can be activated by both parties. These mechanisms ensure an orderly transition and provide clarity on how the transaction will be completed.

ContactContact name: Gemma ReinonContact telephone number: 900707707