Due Diligence Agreement Spain (Acuerdo de Due Diligence)

A Due Diligence Agreement Spain (Acuerdo de Due Diligence) is a contract between a prospective buyer or investor (comprador or inversor potencial) and the owner or management of a target company (empresa objetivo or sociedad objetivo) that establishes the framework, scope, confidentiality obligations, and access procedures for the buyer's pre-acquisition investigation (proceso de due diligence) of the target's legal, financial, tax, commercial, and operational affairs. The Due Diligence Agreement is governed by the general principle of contractual freedom under Article 1255 of the Código Civil (1889), supplemented by the specific protection of business secrets (secretos empresariales) under Ley 1/2019, de 20 de febrero, de Secretos Empresariales — which implements EU Directive (EU) 2016/943 on the protection of undisclosed know-how and business information — and the unfair competition rules of Ley 3/1991 de Competencia Desleal.

Due diligence (diligencia debida) is the investigative process by which a prospective acquirer of a company, business, or significant asset verifies the representations made by the seller in the heads of terms (carta de intenciones or term sheet) and identifies legal, financial, and commercial risks that may affect the transaction price, structure, or warranties. In Spanish mergers and acquisitions (fusiones y adquisiciones — M&A) practice, due diligence typically covers: legal due diligence (due diligence legal) — corporate structure, contracts, litigation, regulatory licences; financial due diligence (due diligence financiero) — audited accounts, management accounts, debt structure; tax due diligence (due diligence fiscal) — AEAT compliance, open tax years, contingent tax liabilities; employment due diligence (due diligence laboral) — workforce agreements, TGSS obligations, pending SMAC proceedings; real estate due diligence (due diligence inmobiliario) — title verification through the Registro de la Propiedad; and environmental due diligence (due diligence medioambiental) — compliance with Ley 26/2007 de Responsabilidad Medioambiental.

The due diligence process in Spanish M&A transactions is managed through a virtual data room (VDR — sala de datos virtual) — a secure online platform to which the seller grants controlled access to designated members of the buyer's due diligence team (equipo de due diligence). The VDR contains the target company's confidential documents — statutory accounts (cuentas anuales deposited with the Registro Mercantil), contracts with key customers and suppliers, employment records, tax returns (declaraciones del Impuesto sobre Sociedades filed with the AEAT), Registro Mercantil filings, and any ongoing litigation documentation. The Due Diligence Agreement governs the terms on which access to the VDR and physical documents is granted.

The Due Diligence Agreement Spain interacts closely with the Confidentiality Agreement (Acuerdo de Confidencialidad or NDA) that typically precedes it in the M&A process. While the NDA covers the initial exchange of information at the interest stage, the Due Diligence Agreement provides a more detailed framework for the systematic investigation phase — specifying the categories of information to be provided, the persons authorised to access it (advising lawyers, auditors, financial advisers), the limitations on use of the information, and the consequences of breach.

Spanish M&A transactions involving listed companies (sociedades cotizadas) are subject to additional disclosure obligations under the Ley del Mercado de Valores (Ley 6/2023, de 17 de marzo, de los Mercados de Valores y de los Servicios de Inversión — which replaced Ley 24/1988) and the regulations of the Comisión Nacional del Mercado de Valores (CNMV). Public takeovers (ofertas públicas de adquisición — OPAs) require prior notification to the CNMV under Real Decreto 1066/2007 and the applicable OPA regulations, and the due diligence process for listed targets must be conducted in compliance with market abuse prohibitions under Regulation (EU) 596/2014 and the CNMV's guidelines on inside information (información privilegiada).

Competition law (derecho de la competencia) imposes important constraints on due diligence in transactions subject to merger control — particularly transactions that exceed the notification thresholds of EU Regulation 139/2004 (EU Merger Regulation) or the Spanish national thresholds under Ley 15/2007 de Defensa de la Competencia and the CNMC merger review procedures. The gun-jumping prohibition (veda de concentración anticipada) prevents buyer and seller from exchanging commercially sensitive information or coordinating business conduct before receiving merger clearance from the European Commission or the CNMC.

The Ley Orgánica 3/2018 (LOPDGDD) and Reglamento (UE) 2016/679 (GDPR) regulate the processing of personal data included in due diligence documents — including employee records, customer data, and director information. The seller must implement appropriate data protection safeguards before disclosing personal data to the buyer's team, typically through a data processing agreement under GDPR Article 28 with the VDR provider and restricted access controls for sensitive personal data categories. Breach of GDPR obligations during due diligence may expose the disclosing party to AEPD sanctions of up to €20 million or 4% of global annual turnover under GDPR Article 83.

A Due Diligence Agreement Spain is required whenever a prospective buyer, investor, or merger partner wishes to conduct a systematic pre-transaction investigation of a target company or business, establishing the legal framework for access to confidential information while protecting the seller's trade secrets under Ley 1/2019 de Secretos Empresariales.

The agreement is needed when a private equity fund (fondo de capital privado) or strategic acquirer (comprador estratégico) commences a formal M&A due diligence process for the acquisition of shares (compraventa de participaciones or acciones) in a Spanish sociedad limitada or sociedad anónima — formalising access to the virtual data room and protecting both parties' interests during the investigation period. Without a written agreement, the disclosure of confidential business information risks misappropriation claims under Ley 1/2019 and civil damages proceedings before the Juzgados de lo Mercantil.

A Due Diligence Agreement is required when a foreign company or investor enters Spain as part of a cross-border acquisition or joint venture (empresa conjunta) — the agreement provides the legal framework for information disclosure under Spanish law while addressing cross-border data protection requirements under Reglamento (UE) 2016/679 (GDPR) for any personal data included in the disclosed documents. Foreign investors from outside the EU must also verify whether the transaction triggers Spain's foreign investment screening regime under Real Decreto-Ley 8/2020 for strategic sectors.

The agreement is needed when a Spanish bank or financial institution (entidad de crédito supervised by the Banco de España under Ley 10/2014 de ordenación, supervisión y solvencia de entidades de crédito) conducts due diligence on a lending target prior to providing acquisition finance, establishing the scope of financial and legal information to be reviewed. Lenders require due diligence findings to price credit risk and set covenant conditions for the acquisition facility.

A Due Diligence Agreement is required in real estate acquisition transactions where the buyer wishes to investigate the legal status of a property portfolio — including title review through the Registro de la Propiedad, urban planning compliance (licencias urbanísticas), lease agreements, and environmental liabilities under Ley 26/2007 — before committing to a property purchase agreement. Real estate due diligence in Spain also covers Impuesto sobre Bienes Inmuebles (IBI) payment status and any outstanding Plusvalía Municipal obligations.

The agreement is also needed when a company is considering acquiring a distressed business (empresa en crisis or en concurso de acreedores) through an asset purchase in insolvency proceedings under Ley Concursal (Real Decreto Legislativo 1/2020) — the Due Diligence Agreement establishes the framework for information access with the court-appointed administración concursal within the procedural constraints of the Ley Concursal.

A Due Diligence Agreement is further required when a startup or SME undergoes investor due diligence as part of a funding round under the Ley 28/2022 de fomento del ecosistema de las empresas emergentes (Startup Law) — business angels and venture capital funds (entidades de capital-riesgo under Ley 22/2014) routinely conduct abbreviated due diligence on investee companies, and the agreement protects the startup's proprietary technology, customer lists, and financial data under the Ley 1/2019 de Secretos Empresariales framework during the investigation process.

Under the Ley de Sociedades de Capital (LSC) RDL 1/2010, the Registro Mercantil maintains the register of Spanish companies. The Código de Comercio 1885 governs commercial obligations. The Agencia Estatal de Administración Tributaria (AEAT) administers Impuesto sobre Sociedades (IS) under Ley 27/2014. The Comisión Nacional de los Mercados y la Competencia (CNMC) enforces competition law. The Código Civil governs general contractual obligations under Article 1255.

A valid Due Diligence Agreement Spain under Código Civil Article 1255 and Ley 1/2019 de Secretos Empresariales must contain the following essential elements to govern the investigation process effectively and protect both parties' rights.

Party Identification: Full legal names, NIFs/CIFs, registered office addresses, and Registro Mercantil details of the prospective buyer or investor (comprador/inversor) and the seller or target company management (vendedor/target). Names and roles of key authorised representatives on each side, and any financial advisers, legal counsel (bufetes de abogados), and auditors forming part of the due diligence team.

Scope of Due Diligence: Precise definition of the due diligence scope — the workstreams to be conducted (legal, financial, tax, employment, real estate, environmental, commercial, technical, IT) and the specific matters included within each workstream. The scope limits the seller's disclosure obligations and defines the buyer's information entitlement — any matter outside the agreed scope may not be investigated without the seller's further consent.

Information to be Disclosed: A schedule or list of document categories that the seller will make available in the virtual data room (VDR) — corporate documents (estatutos sociales, Registro Mercantil filings, shareholders' agreements); financial statements (cuentas anuales, management accounts); material contracts (contratos con clientes y proveedores, arrendamientos, licencias); employment records; tax returns and AEAT correspondence; Registro de la Propiedad and Catastro extracts; and regulatory licences and authorisations.

Data Room Access: The technical and procedural rules for VDR access — the VDR platform to be used, authorised users and their access levels, the Q&A process for buyer's questions (preguntas del comprador) and seller's responses, document download restrictions, and the protocol for requesting physical document inspection.

Confidentiality Obligations: Thorough confidentiality provisions — incorporating or supplementing the previously signed NDA — covering: the definition of confidential information (información confidencial) including all trade secrets (secretos empresariales) under Ley 1/2019; the permitted use limitation (usar la información sólo para evaluar la transacción propuesta); restrictions on disclosure to third parties except authorised advisers bound by equivalent confidentiality; and the standard of care (diligencia debida) required to protect confidential information.

Permitted Recipients: An exhaustive list of the buyer's authorised advisers who may access VDR information — specifically named law firms (abogados), accounting firms (auditores), financial advisers, and consultants — each bound by professional confidentiality duties under their respective Colegios Profesionales and by the terms of the Due Diligence Agreement.

Competition Law Compliance: A clean team protocol (protocolo de clean team) for commercially sensitive information — pricing data, customer lists, cost structures — restricting access to non-operational advisers only, to comply with EU Regulation 139/2004 and Ley 15/2007 de Defensa de la Competencia gun-jumping prohibitions.

Return and Destruction of Information: Obligation on the buyer to return or certify destruction of all confidential documents and copies (including digital copies) within a specified period if the transaction does not proceed — enforceable under Ley 1/2019 de Secretos Empresariales and actionable before the Juzgados de lo Mercantil.

Limitation of Liability: Any caps on the seller's liability for the accuracy of disclosed information during due diligence — noting that the Due Diligence Agreement does not itself constitute representations and warranties (declaraciones y garantías) by the seller, which are addressed in the definitive sale and purchase agreement (contrato de compraventa de acciones — SPA).

Governing Law and Dispute Resolution: Spanish law as the governing law, with jurisdiction before the Juzgado de lo Mercantil of the relevant Comunidad Autónoma, or an arbitration clause before the Corte de Arbitraje de Madrid or Corte Civil y Mercantil de Arbitraje (CIMA) under Ley 60/2003 de Arbitraje — arbitration is typically preferred in M&A disputes for confidentiality and speed.

Forms-legal.com provides this Due Diligence Agreement Spain template as a practical starting point. Due diligence in M&A transactions requires co-ordination by experienced abogados especialistas en fusiones y adquisiciones — the agreement sets the framework, but the conduct of due diligence and preparation of the due diligence report (informe de due diligence) requires qualified legal and financial professionals.

Under the Ley de Sociedades de Capital (LSC) RDL 1/2010, the Registro Mercantil maintains the register of Spanish companies. The Código de Comercio 1885 governs commercial obligations. The Agencia Estatal de Administración Tributaria (AEAT) administers Impuesto sobre Sociedades (IS) under Ley 27/2014. The Comisión Nacional de los Mercados y la Competencia (CNMC) enforces competition law. The Código Civil governs general contractual obligations under Article 1255.