Mergers and acquisitions

The M&A department at AVL Abogados offers comprehensive advisory services. We conduct due diligence analysis with a focus on identifying the core aspects of the transaction to determine the optimal structuring of the merger or acquisition.

We identify contingencies and risks that are essential for the negotiation and drafting of agreements and contracts. Our risk assessment provides not only legal insights but also evaluates the economic implications, ensuring that the client has the best tools at their disposal. If necessary, we subsequently manage the approval process with the Economic Competition Authority (SCE) [Superintendencia de Competencia Económica] or other relevant authorities. We also create protections for intangible assets, all while considering the most efficient tax structure and keeping in mind labor and regulatory aspects, and other legal implications.

AVL Abogados has established significant partnerships with several foreign firms, which have greatly influenced the development of our internal M&A processes. We especially understand that time is of vital importance in these types of transactions, which is why we have a team that offers full availability and immediate response times. We also have extensive experience in contract review, negotiation processes, and advisory services related to Shareholder Agreements (SHAs), Joint Ventures, Share Purchase Agreements (SPAs), and Asset Purchase Agreements (APAs), for majority and minority shareholders, both domestic and international.

We distinguish ourselves by connecting with our clients, their companies, projects, and investments, which allows us to understand that behind these operations lies the creation and development of products or services by many individuals, the livelihood and income of their human resources, as well as the effort and value they bring to society. For this reason, we give our transactions the highest priority, dedication, and utmost attention.

The M&A team at AVL Abogados stands out for providing legal advisory services with a special focus on economic efficiency for the client and a deep understanding of each business sector.

We design a creative, functional, and resource-maximizing transactional strategy. This approach allows us to provide comprehensive advisory services with a thorough understanding of both commercial and financial aspects.

Each team member has international specialization, whether in Canada, Hong Kong, the United States, or England, which enables us to have a team with extensive knowledge and experience. Additionally, we collaborate with foreign firms on cross-border transactions.

Our firm invests annually in its M&A team, providing continuous training opportunities both in Ecuador and abroad. Additionally, we have an international internship program with some of the world’s leading firms to promote knowledge transfer.

Learn about our firm's notable cases.

  • Acquisition of one of the leading bottled products companies (Ecuadorian group) for $160 million.

  • Sale of a logistics company operating at Quito Airport for $27 million.

  • Acquisition of a candy production company for $9 million.

  • Acquisition of 55% of a business specializing in adhesives and construction materials for $11 million.

  • Sale of intangible assets in the pharmaceutical sector for $4 million.

  • Acquisition of a beverage company for $35 million.

  • Acquisition of a candy company for $134 million.

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Recognitions

Leaders League

Mergers and Acquisitions – Corporate / M&A – 2024
Highly Recommended

When is a lawyer needed in Mergers and Acquisitions?

The primary issue is identifying risks and then addressing them through contractual clauses that limit liability. Additionally, foreign clients, investors, and investment funds require guidance to understand their legal obligations under Ecuadorian jurisdiction, and they need to structure contractual protections for their investments. In the case of a joint venture, the main challenge is determining responsibilities, obligations, and dispute resolution mechanisms for the effective management of the project, company, or investment. After structuring and creating legal frameworks tailored to the client’s needs and business sector, it is crucial to work with authorities to facilitate the transaction, particularly if approvals are needed for the acquisition, merger, or relevant operation.

What services does AVL provide in this area?

An M&A lawyer serves a variety of clients:

  • Minority Shareholders: We advise those looking to sell their shares in a business. Key areas of advice include negotiating share purchase agreements to ensure a fair price and limit their liability.

  • Foreign Investors or Investment Funds: We advise those seeking to acquire companies in Ecuador. In this case, an M&A lawyer is essential for understanding and explaining potential entry barriers, legal processes, key obligations under Ecuadorian law, structuring and negotiating contracts to facilitate the investment, and securing guarantees and protections.

  • Majority Shareholders: We advise those looking to make agreements with other shareholders about a company’s management. Here, an M&A lawyer is needed to regulate these shareholder agreements, ensure the company operates smoothly, establish obligations and responsibilities, and provide solutions for potential share sales, mergers, spin-offs, and other processes

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