Corporate Acquisitions And Mergers In Spain

Acquisitions

Company's acquisitions are normally carried out either by means of a shares deal (purchase of shares) or an assets deal (purchase of assets). The main features of these alternatives are described below.

Purchase of Assets

The purchase of assets as an alternative to the purchase of shares for the purposes of acquiring a business may be based on different advantages that this kind of operation offers to both the seller and the purchaser, inter alia, the seller's tax costs may be reduced, and the purchaser's risk may be limited with respect to contingent liabilities of the target company.

The sale of assets can reduce the seller's tax costs in several ways: