>> 10 Tips for Investing in Argentina

6. Watch out for labor and social security contingencies: you will be jointly and severally liable with seller irrespective of the form of the transaction.

Labor laws are highly protective of employees, and labor and social security contingencies usually amount to significant sums. In case of a stock deal, said contingencies will obviously remain at the target company. But even if you conduct an asset deal which comprises substantially all of the target’s assets (or a whole business unit) you will be held jointly and severally liable with the seller. Also, changes in labor conditions may give employees an opportunity to leave the company and claim for severance.

volver atrás