In this article we would like to give you some tips that may be important to know if you are considering buying a company here and are also considering moving to Spain.
The Spanish population is on average an old population: more people retire every year than there are new employees and entrepreneurs. Were it not for high immigration, the Spanish population would actually decrease. As a result, thousands of good companies come up for sale every year, for which the current owner has no succession.
B.A. Boss has first-hand knowledge of those companies like no other company in Spain. As the founder of the VR Business Brokers franchise chain in Spain (with 15 offices at the time, the largest intermediary) and former director of Bizalia, the largest Spanish website of companies for sale, we have a unique position in the market.
B.A. Boss is the only company with the CBI (Certified Business Intermediary) certificate from the International Business Broker Association (IBBA). In addition, B.A. Boss valued more companies than any other firm in Spain.
Especially in Spain it is important to be well informed before going into business. Spanish entrepreneurs greatly overestimate the value of their companies, one of the reasons that less than 10% of Spanish companies are eventually sold (more than 1.1 million companies closed in Spain in the last 10 years!).
In addition, when considering the purchase of a company in general, and especially in Spain, fiscal and legal assistance is indispensable. Many small businesses in Spain, knowingly or unknowingly, run certain risks in whether or not they comply with tax laws (payment of taxes), labor obligations (labor contingencies) and legal requirements (both national and regional). If you take over a company, you should be well aware of what obligations and responsibilities you are taking on (through the takeover of a company), how you can check this, what amounts it could involve and what rights you acquire (the old owners are always jointly liable!).
Spanish banks are very conservative and will not easily finance a (small) company, let alone a non-Spaniard. In addition, there are legal limits to what a small business can borrow to buy out a shareholder.
Having assets (real estate) in Spain is almost always a must for a loan, or one must be able to provide international bank balances as a guarantee. Financing working capital to small businesses is also difficult. On the other hand, the large banks are also modernizing quickly and financing constructions via leasing, factoring and renting, for example, are rapidly emerging.
First check what you want to know (also on a personal level) with B.A. Boss, we provide a lot of information and advice as part of our service completely free of charge or through clearly agreed in advance, and fixed rates.
Buying and selling a business ....
a business for professionals!