{"id":19757,"date":"2025-10-15T16:06:54","date_gmt":"2025-10-15T16:06:54","guid":{"rendered":"https:\/\/gmtaxconsultancy.com\/law\/transfer-business-third-party\/"},"modified":"2025-11-06T17:39:00","modified_gmt":"2025-11-06T17:39:00","slug":"transfer-business-third-party","status":"publish","type":"post","link":"https:\/\/gmtaxconsultancy.com\/en\/company\/transfer-business-third-party\/","title":{"rendered":"Transferring the company to a third party"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_86 ez-toc-wrap-left counter-hierarchy ez-toc-counter ez-toc-white ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">\u00cdndice contenidos<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/gmtaxconsultancy.com\/en\/company\/transfer-business-third-party\/#Steps_timelines_and_legal_implications\" >Steps, timelines and legal implications<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/gmtaxconsultancy.com\/en\/company\/transfer-business-third-party\/#Step_1_Company_valuation\" >Step 1: Company valuation<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/gmtaxconsultancy.com\/en\/company\/transfer-business-third-party\/#Most_common_valuation_methods\" >Most common valuation methods<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/gmtaxconsultancy.com\/en\/company\/transfer-business-third-party\/#Duration_of_the_process\" >Duration of the process<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/gmtaxconsultancy.com\/en\/company\/transfer-business-third-party\/#Step_2_search_for_buyers\" >Step 2: search for buyers<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/gmtaxconsultancy.com\/en\/company\/transfer-business-third-party\/#Possible_interested_parties\" >Possible interested parties<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/gmtaxconsultancy.com\/en\/company\/transfer-business-third-party\/#Step_3_negotiation_and_due_diligence\" >Step 3: negotiation and due diligence<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/gmtaxconsultancy.com\/en\/company\/transfer-business-third-party\/#Step_4_sale_and_purchase_agreement\" >Step 4: sale and purchase agreement<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/gmtaxconsultancy.com\/en\/company\/transfer-business-third-party\/#Process_timeline\" >Process timeline<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/gmtaxconsultancy.com\/en\/company\/transfer-business-third-party\/#Employment_impact_of_the_transfer\" >Employment impact of the transfer<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/gmtaxconsultancy.com\/en\/company\/transfer-business-third-party\/#Responsibilities_after_the_sale\" >Responsibilities after the sale<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/gmtaxconsultancy.com\/en\/company\/transfer-business-third-party\/#Alternative_transfer_methods\" >Alternative transfer methods<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/gmtaxconsultancy.com\/en\/company\/transfer-business-third-party\/#Special_case_buying_a_company_with_money_received_through_a_donation\" >Special case: buying a company with money received through a donation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/gmtaxconsultancy.com\/en\/company\/transfer-business-third-party\/#Comparison_between_transfer_to_a_third_party_and_liquidation\" >Comparison between transfer to a third party and liquidation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/gmtaxconsultancy.com\/en\/company\/transfer-business-third-party\/#Legal_advice\" >Legal advice<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"Steps_timelines_and_legal_implications\"><\/span><b>Steps, timelines and legal implications<\/b><span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p>At some point, many business owners conclude that it is time to <b>transfer their company to a third party<\/b>. The decision may arise from several reasons, such as retirement, lack of generational replacement, the desire to start new projects or the need to obtain liquidity. At <b>GM Tax Consultancy,<\/b> we understand that this process creates doubts and uncertainty. It is not only about finding a buyer, it is a procedure that involves <b>economic valuation, negotiation, legal, tax and employment implications<\/b>. For this reason, we have prepared this guide to offer you a clear and practical view of how the transfer of a company works, how long it takes and what consequences it has for you, your partners and your employees.<\/p>\n<table>\n<tbody>\n<tr>\n<td>\n<p style=\"text-align: center;\"><b> <\/b><b>What to do with your business when you retire?<\/b><\/p>\n<p style=\"text-align: center;\">We explain the <b>legal and tax alternatives<\/b> to transfer your business: sale, family succession, transfer to employees or liquidation.<\/p>\n<p style=\"text-align: center;\"><a href='#' class='small-button smallorange'>Learn more<\/a><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Step_1_Company_valuation\"><\/span><b>Step 1: Company valuation<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The first step in any transfer is to determine <b>the real value of your company<\/b>. This valuation is not a simple accounting calculation; it is a comprehensive analysis that must reflect both the current financial situation and future potential.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Most_common_valuation_methods\"><\/span><b>Most common valuation methods<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Our experts use different approaches depending on the type of company and the sector:<\/p>\n<ul>\n<li><b>Asset valuation<\/b>: based on the company\u2019s balance sheet and assets. It includes methods such as book value, adjusted value, liquidation value and replacement cost.<\/li>\n<li><b>Income valuation<\/b>: analyses the profit and loss account, profits, sales or EBITDA.<\/li>\n<li><b>Goodwill<\/b>: considers intangibles such as brand, clients and reputation.<\/li>\n<li><b>Discounted cash flows<\/b>: estimate the company\u2019s future income and bring it to present value.<\/li>\n<\/ul>\n<p>In practice, negotiations usually focus on multiple EBITDA or revenue.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Duration_of_the_process\"><\/span><b>Duration of the process<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The valuation can take around two months, provided the necessary documentation is available, such as balance sheets, contracts and annual accounts.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Step_2_search_for_buyers\"><\/span><b>Step 2: search for buyers<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Once the value of the company is known, the next step is to identify potential buyers. Discretion is important, and sensitive information should be protected through <b>confidentiality agreements (NDA)<\/b>.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Possible_interested_parties\"><\/span><b>Possible interested parties<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li>Strategic clients or suppliers.<\/li>\n<li>Key employees within the company.<\/li>\n<li>Competitors seeking growth.<\/li>\n<li>Investment funds or companies specialised in buying and selling businesses.<\/li>\n<\/ul>\n<p>Our experts usually recommend a combination of direct contacts and support from intermediaries specialised in mergers and acquisitions.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Step_3_negotiation_and_due_diligence\"><\/span><b>Step 3: negotiation and due diligence<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The negotiation of a business transfer involves more than price. It is essential to define <b>payment terms, deadlines, guarantees and additional clauses<\/b> such as non-compete agreements. Before signing, the buyer will carry out <b>due diligence<\/b>. This is a legal, tax and employment audit where the company\u2019s documentation is reviewed:<\/p>\n<ul>\n<li>Financial statements.<\/li>\n<li>Tax compliance.<\/li>\n<li>Employment contracts and commercial agreements.<\/li>\n<li>Licences, permits and possible contingencies.<\/li>\n<\/ul>\n<p>This step ensures transparency and allows price adjustments if hidden risks appear.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Step_4_sale_and_purchase_agreement\"><\/span><b>Step 4: sale and purchase agreement<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>When everything has been reviewed, the <b>transfer of shares or assets agreement<\/b> is signed. It must be notarised and registered in the Commercial Registry. The agreement must include:<\/p>\n<ul>\n<li>Price and payment method.<\/li>\n<li>Delivery conditions.<\/li>\n<li>Guarantees for previous debts or obligations.<\/li>\n<li>Confidentiality and non-compete clauses.<\/li>\n<\/ul>\n<p>At GM Tax Consultancy, we support our clients in drafting and reviewing this agreement to ensure that everything is properly regulated and to avoid future conflicts.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Process_timeline\"><\/span><b>Process timeline<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The time required to transfer a company depends on the complexity of each case. In general, the complete process can take <b>between six months and one year<\/b>, from the initial valuation to the signing of the agreement.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Employment_impact_of_the_transfer\"><\/span><b>Employment impact of the transfer<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>One of the most sensitive aspects is the effect on employees. The law is clear:<\/p>\n<ul>\n<li>Employees keep their contracts, seniority and conditions.<\/li>\n<li>The new owner assumes all employment and social security obligations.<\/li>\n<li>Contracts do not need to be terminated or compensated unless later changes are agreed.<\/li>\n<\/ul>\n<p>For staff, this means the transfer ensures continuity of employment, which gives stability and confidence.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Responsibilities_after_the_sale\"><\/span><b>Responsibilities after the sale<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>It is important to know that the transfer of the company <b>does not automatically release you from all previous obligations<\/b>.<\/p>\n<ul>\n<li>The law can establish joint liability between seller and buyer, especially regarding tax and employment matters.<\/li>\n<li>For this reason, many agreements include guarantees or price retentions to cover possible contingencies that arise after completion.<\/li>\n<\/ul>\n<p>Our experts analyse each situation to reduce these risks and protect your interests.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Alternative_transfer_methods\"><\/span><b>Alternative transfer methods<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In addition to a direct sale, there are other useful options in specific cases:<\/p>\n<ul>\n<li><b>Merger<\/b>: two or more companies join to form a new entity.<\/li>\n<li><b>Spin-off<\/b>: the company is divided into several entities, distributing assets and liabilities.<\/li>\n<li><b>Asset transfer<\/b>: specific assets such as machinery, property or brands are transferred instead of shares.<\/li>\n<\/ul>\n<p>These alternatives can be useful in complex operations or regulated sectors.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Special_case_buying_a_company_with_money_received_through_a_donation\"><\/span><b>Special case: buying a company with money received through a donation<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In Catalonia, there is a specific alternative: <b>donating money to a descendant to acquire a company<\/b>. The regulations allow a 95 per cent reduction in Inheritance and Gift Tax (with a limit of EUR 200,000) if conditions are met, such as:<\/p>\n<ul>\n<li>The money must be used to acquire shares of a company based in Catalonia.<\/li>\n<li>The transaction must take place within a maximum of six months. The recipient must acquire more than 50 per cent of the share capital and perform management functions.<\/li>\n<li>The donation must be executed in a public deed stating the purpose of the donated funds.<\/li>\n<li>There must be no connection between the company and the recipient.<\/li>\n<li>The company acquired must not have revenue above EUR 3 million (in the case of a company) or EUR 1 million (in the case of a professional business).<\/li>\n<\/ul>\n<p>This option helps generational change and supports young entrepreneurs.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Comparison_between_transfer_to_a_third_party_and_liquidation\"><\/span><b>Comparison between transfer to a third party and liquidation<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Unlike liquidation, transfer to a third party:<\/p>\n<ul>\n<li>Ensures business continuity.<\/li>\n<li>Generates higher economic value than selling assets alone.<\/li>\n<li>Maintains jobs.<\/li>\n<\/ul>\n<table>\n<tbody>\n<tr>\n<td><b>Aspect<\/b><\/td>\n<td><b>Transfer to a third party<\/b><\/td>\n<td><b>Liquidation<\/b><\/td>\n<\/tr>\n<tr>\n<td><b>Continuity<\/b><\/td>\n<td>The business remains active under a new owner.<\/td>\n<td>Definitive cessation of activity.<\/td>\n<\/tr>\n<tr>\n<td><b>Economic value<\/b><\/td>\n<td>Higher return: the business is sold as a going concern.<\/td>\n<td>Lower return: asset value only.<\/td>\n<\/tr>\n<tr>\n<td><b>Employment<\/b><\/td>\n<td>Most jobs are maintained.<\/td>\n<td>Termination of contracts and compensation.<\/td>\n<\/tr>\n<tr>\n<td><b>Process<\/b><\/td>\n<td>Longer and more complex, but planned and profitable.<\/td>\n<td>Quicker and simpler, with lower benefit.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Liquidation may be quicker, but it usually involves lower economic returns and contract termination.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Legal_advice\"><\/span><b>Legal advice<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In each transfer process, we work with a clear method:<\/p>\n<ol>\n<li><b>Initial analysis<\/b> of the company\u2019s situation and the owner\u2019s objectives.<\/li>\n<li><b>Economic and tax valuation<\/b> adapted to the sector.<\/li>\n<li><b>Search for buyers and negotiate<\/b> in safe conditions.<\/li>\n<li><b>Legal and contractual support<\/b> in all phases.<\/li>\n<li><b>Tax reduction<\/b> to reduce the tax burden.<\/li>\n<\/ol>\n<p>Transferring your company to a third party is a complex process that offers opportunities. It requires analysing the value of your business, negotiating with potential buyers, complying with legal obligations and protecting your interests and your staff. At <b>GM Tax Consultancy,<\/b> we offer our tax and legal experts to accompany you every step. We know each company is different, and every owner has different goals. <b>If you are thinking about selling your company to a third party, we can help you do it in an organised and efficient way with the confidence of being in good hands.<\/b> Reviewed by <a href=\"https:\/\/gmtaxconsultancy.com\/en\/lawyers-barcelona\/gerard-valldeperes-vilanova\/\"><b>Gerard Valldeperes Vilanova<\/b><\/a> \n\t\t<div class='author-shortcodes'>\n\t\t\t<div class='author-inner'>\n\t\t\t\t<div class='author-image'>\n\t\t\t<img src='https:\/\/gmtaxconsultancy.com\/wp-content\/uploads\/gerard-valldeperes-3-18430_60x60.jpg' alt='' \/>\n\t\t\t<div class='author-overlay'><\/div>\n\t\t<\/div> \n\t\t<div class='author-info'>\n\t\t\tLawyer and Economist from Pompeu Fabra University, with a master\u2019s degree in Law and in Legal-Tax Advisory. Specialist in taxation of individuals and companies, he joined the firm in 2020. Member of the Barcelona Bar Association.\n\t\t<\/div>\n\t\t\t<\/div>\n\t\t<\/div> <b><\/b><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Steps, timelines and legal implications At some point, many business owners conclude that it is time to transfer their company to a third party. The decision may arise from several reasons, such as retirement, lack of generational replacement, the desire to start new projects or the need to obtain liquidity. At GM Tax Consultancy, we [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":19698,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[699],"tags":[],"class_list":["post-19757","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-company"],"_links":{"self":[{"href":"https:\/\/gmtaxconsultancy.com\/en\/wp-json\/wp\/v2\/posts\/19757","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/gmtaxconsultancy.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/gmtaxconsultancy.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/gmtaxconsultancy.com\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/gmtaxconsultancy.com\/en\/wp-json\/wp\/v2\/comments?post=19757"}],"version-history":[{"count":2,"href":"https:\/\/gmtaxconsultancy.com\/en\/wp-json\/wp\/v2\/posts\/19757\/revisions"}],"predecessor-version":[{"id":19772,"href":"https:\/\/gmtaxconsultancy.com\/en\/wp-json\/wp\/v2\/posts\/19757\/revisions\/19772"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/gmtaxconsultancy.com\/en\/wp-json\/wp\/v2\/media\/19698"}],"wp:attachment":[{"href":"https:\/\/gmtaxconsultancy.com\/en\/wp-json\/wp\/v2\/media?parent=19757"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/gmtaxconsultancy.com\/en\/wp-json\/wp\/v2\/categories?post=19757"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/gmtaxconsultancy.com\/en\/wp-json\/wp\/v2\/tags?post=19757"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}