Purchase a Company in Austria
Purchase a Company in AustriaUpdated on Wednesday 23rd June 2021
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One solution for investors who want to enter the market is to purchase a company in Austria. This is commonly accomplished through a share sale and transfer.
Special consideration is given to public and private company purchase. Legal aid is useful in both situations but it can be most relevant for public bids.
Our lawyers in Austria provide you with an overview of the most important laws and regulations concerning company acquisitions.
Laws governing company purchases in Austria
Purchasing a company in Austria is possible through a takeover agreement. The Civil Code, the Commercial Code, the Limited Liability Companies Act and the Joint Stock Corporations Act are all legal resources when drawing up the agreement to purchase a private company. Special consideration is made regarding the fair treatment of shareholders. The Labour Law is an important resource for the treatment of employees in Austria: the transfer of employment contracts is possible after a share purchase is performed by the acquiring company.
The most important law that governs public company acquisitions in Austria is the Takeover Act of 1999, with its subsequent amendments. It applies to Austrian resident companies that have voluntarily been subjected to a take-over bid. The Austrian Takeover Commission is an independent body that supervises public company acquisitions in the country.
Our lawyers in Austria can give you detailed information about the laws and the relevant legislation summarized in this article. If you need to buy a company in another country, such as Lithuania, we can put you in touch with our local partners.
Acquiring a company in Austria
Private companies in Austria may be acquired through a share deal: the buyer will purchase the majority of the shares in another company and become its primary shareholder or owner. This is followed by acquiring that company’s assets, together with its debts and potential liabilities. For this purpose, it is recommended that investors perform a company due diligence.
Another option for investors is to purchase a ready-made company in Austria. By doing so the investor will need only to go through an ownership transfer and will be able to start the business activities faster than if having to incorporate a new company.
For more details on company mergers and acquisitions as well as complete legal assistance for these types of commercial transactions and agreements please contact our law firm in Austria.