Sale of companies in Portugal: How does it work?

The sale of a company is one of the most decisive moments for any entrepreneur. Whether for strategic reasons, succession or the need for liquidity, this process requires rigorous planning and in-depth knowledge of the market. In Portugal, selling a company successfully does not depend only on finding a buyer, but on correctly structuring each stage – from the valuation to the formalization of the deal. In this article, we explore all the fundamental steps to ensure an effective transaction.

1. Preparation for Sale

Before putting a company up for sale, it is essential to conduct an in-depth analysis of its financial, operational, and strategic situation. Key things to consider include:

• Company Valuation – Determining the fair value of the company based on its profitability, assets, cash flow, and potential risks.
• Financial Structuring – Organizing financial documents to ensure transparency and credibility in the sales process.
• Strategy Definition – Identifying potential buyers and establishing an appropriate negotiation plan.

2. Search and Negotiation with Buyers

Finding the right buyer is one of the most critical challenges of selling a business. The main stakeholders may be private investors, competitors, or business groups looking to expand operations. During this phase, it is essential to:

• Prepare an Information Memorandum (Teaser) – Detailed document that presents the company’s financial and operational data.
• Perform a Due Diligence – An audit process in which the buyer thoroughly valuates the company’s conditions before moving forward with the purchase.
• Negotiate Terms of Contract – Define important clauses for the agreement itself, such as payment method, after-sales obligations, and guarantees for both parties.

3. Formalization of the Sale

After the negotiation phase, the purchase and sale contract must be formalized in accordance with Portuguese law. Key documents include:

• Purchase and Sale Agreement – Agreement that stipulates all the conditions of the business.
• Transfer of Shareholdings – Procedure to change the corporate structure.
• Regulatory Authorization – Depending on the sector of activity, approval by regulatory entities may be required.

4. After-Sales Follow-Up

The sale process does not end with the signing of the contract. It is crucial to ensure a proper transition for the company to maintain its activity efficiently. Among the main aspects to monitor are:

• Team Integration – Ensuring the adaptation of employees to the new management.
• Compliance with Obligations – Verification of compliance with contractual and tax clauses.
• Evolution Monitoring – Analyze the impacts of the sale for both parties involved.

In this way, the sale of a company in Portugal requires specialized knowledge and rigorous planning to ensure an efficient and advantageous transaction. ValuingTools has a diversified portfolio of companies available for sale, facilitating the process of identifying opportunities in the market. If you are looking to acquire or sell a company, contact ValuingTools for personalized support and solutions tailored to your needs.

At ValuingTools, we turn opportunities into successful businesses! Visit our website and discover our complete portfolio of companies available for investment.