Acquiring a Danish company - Financing The Acquisition Using the Target's Funds

Abstract

Acquiring a Danish company poses much the same challenges as acquiring a company in most other jurisdictions. However under Danish law issues may arise relating to the financing of the acquisition and the post-acquisition cash flow of the acquired Danish companies. The issues arise as a result of limitations that are only to some extent found in other jurisdictions , and thus are often the obstacle that acquirors not familiar with Danish law will face. This article will provide an overview of the limitations relating to the financing of an acquisition of a Danish company and the most common ways an acquiror can structure the acquisition around these limitations.