Business sales and acquisitions in Marina Alta (Alicante)

The order book of contracted work and its margin, relationships with repeat customers, the quality and stability of the teams, and that there are no outstanding claims or warranty liabilities. They will also review the machinery and vehicles and whether subcontracting is in order, because any contingency is deducted from the price.

By separating in the accounts what is new-build work from what is maintenance and recurring services. Signed maintenance contracts, with their duration and renewals, are what reassures a buyer most, because they secure work even if new-build work falls.

There are fewer local buyers, but a business that serves a whole area or has no competition nearby can be attractive to someone from outside. What matters is that its activity does not depend only on your presence and that the buyer can keep the customers.

The law does not require an audit in order to sell. As a general rule, a company must have its accounts audited unless it meets the exemption conditions in Article 263 of the Ley de Sociedades de Capital (Spanish Companies Act), and even when it is not obliged to, minority shareholders can request an audit in the cases set out in Article 265.2; it is advisable to confirm this with an adviser. Even so, the accounts must be reliable and match the tax returns filed. If business income or expenses are mixed with personal ones, it is better to sort them out first, because the buyer will only pay for what they can verify.

If the shares (participaciones) are sold, the liabilities remain with the company, which is why the buyer will ask to know about them and to limit them in the contract. If only the business is sold, the parties need to agree who is responsible for previous work. It is advisable to confirm this with a legal adviser.