Should an M&A advisor be informed about the Legal landscape? Legal aspects are of high importance when buying a business. Your advisor needs to be up to date with the legal framework that applies to M&A transactions in Greece. Here it is mentioned selected aspects that you need to consider when acquiring a company in Greece. In general, a part of the legal environment is similar to international law. We also touch upon some of the legal regulations for M&A projects in Greece that are clearly different.
It is important for the parties involved in a transaction to agree on the structure of the acquisition and the relevant assets included in the scope, before the commencement of any negotiation process. Important to know is whether the transaction relates to an asset-deal or a share-deal. In a share deal it is important if the acquisition involves the transfer of part or all of the share capital of the target or whether the acquisition involves the merger of two or more entities. Main documents that are being used are the MOU (Memorandum of Understanding), the NDA (Non-Disclosure Agreement), the LOU (Letter of Understanding), the SPA (Share Purchase Agreement) and the NCA (Non-Compete Agreement). In this sense legal aspects in Greece don’t differ that much from global practise. We are expanding the LOU type that is most common to be used is a binding format which means that the Letter of Understanding has binding legal consequences.
A typical LOU (Letter of Understanding) in Greece will normally involve the following terms and conditions:
Feel free to contact us is you have any questions about the legal aspects of buying a business in Greece. Visit the profile of M&A advisor Christos Roussis to find out what he can do for you on buying a business in Greece.