Deal
by Brandauer RA
Glossary

Share deal

Acquisition of a business by purchasing the shares (for example GmbH shares) in the legal entity, which continues with all its assets and liabilities.

In brief

In a share deal the buyer acquires the shares in the company. The legal entity stays identical, so all contracts, permits and liabilities continue unchanged. This simplifies the transfer compared with the asset deal, but shifts the risk of hidden legacy issues onto the buyer. A thorough due diligence is therefore essential.

For an Austrian GmbH the transfer of shares requires a notarial deed under section 76 GmbHG. The buyer protects itself through warranties and indemnities in the share purchase agreement. Existing change-of-control clauses in contracts must also be reviewed.

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Legal basis

Statutory texts for orientation; the version in force at the relevant time prevails.

This explanation gives a general overview of Austrian law and does not replace advice in an individual case. The specific circumstances of your transaction are always decisive.

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Contact

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Address

BRANDAUER Rechtsanwälte GmbH Giselakai 51 5020 Salzburg