What Is Company Due Diligence?
Due diligence in Spain refers to the legal, financial, tax, and operational review of a company before an acquisition, investment, or business partnership. It uncovers hidden risks, confirms compliance, and protects your interests.
At Borderless Lawyers, we help international clients conduct professional due diligence before:
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Buying a Spanish company
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Entering joint ventures or partnerships
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Investing in corporate shares or assets
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Merging with or absorbing another business
🔍 What’s Included in Spanish Due Diligence?
Our due diligence process covers:
⚖️ 1. Legal Due Diligence
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Review of company incorporation documents
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Verification of shareholder structure & directorship
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Inspection of board resolutions and legal standing
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Compliance with Spanish Commercial Code and bylaws
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Pending or historical litigation and court filings
📑 2. Corporate Registry Verification
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Status at the Registro Mercantil (Mercantile Registry)
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Verification of filed accounts, directors, and appointments
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Confirmation of company type (SL, SA, etc.)
📌 Legal inconsistencies in the registry can invalidate transactions.
💰 3. Financial & Accounting Review
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Audit of balance sheets, income statements, and ledgers
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Tax liabilities, government filings, and pending obligations
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Debt structure and liabilities (loans, liens, or encumbrances)
💡 Financial irregularities are often hidden in off-the-book agreements.
🧾 4. Commercial Contracts & Obligations
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Key supplier and client agreements
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Lease contracts, licenses, and distribution deals
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Employee contracts and labor risks (severance, social security)
📍 We identify termination clauses, penalties, and exclusivity traps.
🧑🤝🧑 5. Employment & Labor Matters
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Employee headcount and role structure
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Union involvement or collective agreements
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Open HR disputes or risk of mass claims
⚖️ Spain has strict labor protection laws—non-compliance carries high penalties.
⚠️ Risks of Skipping Due Diligence
Without proper legal and financial due diligence, you may face:
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Hidden debts or unpaid taxes
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Undisclosed court proceedings
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Invalid director/shareholder appointments
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Employee claims or unresolved labor disputes
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Regulatory non-compliance fines
🚫 Once the acquisition is complete, you assume full responsibility for these risks.
🧑💼 Who Needs Due Diligence in Spain?
Due diligence is essential for:
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📈 Foreign investors entering the Spanish market
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🤝 Buyers of Spanish companies or branches
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🏢 M&A firms or corporate development teams
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💼 Startup founders negotiating equity deals
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🏛️ Legal teams assessing target company liability
🌍 Cross-Border & Multilingual Support
At Borderless Lawyers, we work with:
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Multinational corporations
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Private equity firms
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Family offices and VC funds
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Individual investors and entrepreneurs
🌐 We handle Spanish-English bilingual reviews and provide custom legal due diligence reports in your preferred format.
💬 Real Case Study
Case: A Canadian firm approached us to acquire a Valencia-based logistics company. Our due diligence revealed tax debts and a hidden labor claim. Negotiation terms were revised, saving the client over €200,000.
🚀 Get Peace of Mind with Expert Due Diligence
Whether you’re investing €50,000 or €5M+, don’t risk your future without knowing what lies beneath.
✅ Schedule a confidential legal consultation with Borderless Lawyers.
🛡️ We protect your deal and your interests.