Lawyers for Business Division – Madrid
There are situations in which what is most in the interest of a company is its division or splitting, that is, to proceed to break up into two or more parts that can be sold, or that may be more profitable, safer, productive or prosperous separately.
This is the opposite operation to a merger, but both are closely related because they are linked to the same special tax regime. In addition, it is common for the splitting of a company to lead to a merger with another company or companies of the splitting parts.
Having professionals who are familiar with and have experience in the tax regime for the structural modification of companies and in the corresponding procedures and processing is essential for the operation to be successful, as well as to take advantage of all the tax benefits resulting from acting in accordance with current regulations.
Advantages of company spin-offs
Some of the advantages of demerger are:
- prevents the excessive growth of an entity
- separation of real estate assets from the company’s core activity
- reorganization and protection of assets against potential future risks (creditors)
- allows the sale of a company to multiple buyers who cannot or are not interested in a full acquisition
- economic benefits derived from tax advantages
- makes different sections of the company independent, leading to more specialized and efficient management
Protect the future of your company
Easier and more profitable sales
Count on the best experts
Types of spin-off
Regarding the types of division or separation, broadly speaking, we can refer to:
- Total spin-off: each resulting part is either absorbed by another company or becomes a newly established company
- Partial spin-off: a portion of the original company remains as such, while the other parts are absorbed or established separately
- Segregation: similar to the previous types but differs in that the split companies receive shares from the original company
Trust the best specialists
Needless to say, the advice and execution of a spin-off should be handled by experts. Having the support of highly experienced lawyers in corporate restructuring is a guarantee of success in the assessment and, if applicable, execution of the transaction.
Our corporate law team operates from Madrid and carries out operations throughout Spain, being able to travel nationwide if required.
Visit us at our headquarters on Avenida del Mediterráneo, 10, in Madrid. Meetings via videoconference are also available, as well as telephone consultations.
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