The article discusses crucial considerations for foreign investors interested in acquiring companies in Croatia, highlighting the importance of legal due diligence and outlining common pitfalls encountered in M&A transactions.
Key Points
- Foreign investments in Croatia are on the rise, especially in tourism, real estate, and IT sectors.
- Legal due diligence is essential, covering corporate structure, contracts, labour compliance, and regulatory issues.
- Ownership verification can be complicated due to discrepancies in the land registry.
- Labour laws protect employees’ rights, making compliance critical for M&A transactions.
- Regulatory approvals may be required, especially in sensitive industries, and foreign investments are subject to screening.
- Hidden liabilities like undisclosed debts and environmental obligations can significantly impact valuation.
- Buyers should ensure strong contractual protections, including representations and warranties in agreements.
Why should I read this?
If you’re considering an investment in Croatia, this article is a must-read. It lays out the legal landscape in a way that will save you from potential pitfalls and ensure that you’re well-informed before diving into the market. We’ve done the groundwork for you—don’t miss out on learning how to navigate M&A successfully in this promising investment destination!