An important aspect of M&A transactions is due diligence in private M&A in EU countries, which will be discussed in today's blog post. We will dwell in more detail on the peculiarities of due diligence of companies in Greece which is the EU-member state. Although there are no specific legal requirements for conducting due diligence in this country, we are confident that it is wise and forward-looking for a potential buyer to initiate such due diligence verification before a transaction is made.
Market without borders
The entrepreneurial opportunities that arise as a result of the European internal market without borders are numerous and differ from each other due to the different levels of individual development of the EU countries.
These opportunities are exploited by most corporations facing the need to expand their business, as well as by midsize companies and companies that would like to have a share of the profits of an expanded domestic market.
When planning to invest in Greece, companies are faced with the choice of opening a new company or taking control of management or investing in an existing company. Many people choose to take advantage of controlling, managing, or invest in an already existing company in Greece through an M&A deal.
Check before buying
Often, before deciding to buy a Greek company, the buyer makes an important decision to check the potential property. The most typical areas of such verification include:
- legal aspects;
- accounting statements;
- tax issues.
Also, depending on the type of activity of the object of purchase, it may also require specific expertise in such areas as security, technical equipment, IT, compliance with environmental standards, etc.
If a company is being auctioned, or when the seller is particularly interested in expediting the sale process, the seller initiates the verification himself and then provides the due diligence report of the company in Greece to the potential buyer.
The final arrangement of the planned merger or acquisition of the Greek company is then recorded on the basis of a due diligence report of the state of the company.
Publicly available information
When conducting due diligence of a company in Greece, buyers or their representatives can use information searches in government registers. The newly created Commercial Register includes information on:
- the charter of the target company;
- published financial statements;
- reputation.
Browsing the land registries, one can easily find public records of real estate purposes and assignments for business receivables.
Interested in this topic? We are ready to provide you with more details during individual consultation on conducting M&A transactions in Greece. The qualified solicitors of our company can provide the necessary consulting services and legal assistance at all stages of the due diligence of a Greek company. To contact us, please fill out a special short form below or use the Contacts section on our website.
