Mergers and Acquisitions in the Czech Republic: Legal Steps for Foreign Investors

When you're planning to acquire a Czech company or merge with a local business partner, understanding the mandatory legal procedures can mean the difference between a smooth transaction and costly penalties. This article provides specific insights into the Czech M&A process—from mandatory merger approvals and foreign investment screening to due diligence requirements and post-closing integration—drawn from daily legal practice at a leading Czech law firm in Prague, European Union, that specializes in international transactions.

Need advice on this topic? Contact the ARROWS law firm by email office@arws.cz or phone +420 245 007 740. Your question will be answered by "Mgr. Vojtěch Sucharda", an expert on the subject.

Why Czech M&A transactions require specialized legal guidance

Foreign investors frequently underestimate how Czech mergers and acquisitions differ from transactions in their home jurisdictions. Czech M&A law combines domestic competition rules, foreign investment screening mechanisms, labor law protections under TUPE regulations, and complex transformation procedures that can invalidate your entire transaction if handled incorrectly. 

The Czech Office for the Protection of Competition (ÚOHS) has recently increased enforcement, imposing fines up to 10% of global turnover for violations of the standstill obligation—the requirement that parties cannot implement a transaction before receiving regulatory clearance. For non-EU investors, additional screening by the Ministry of Industry and Trade adds another regulatory layer that can delay or even prohibit your investment. 

ARROWS law firm, based in Prague, European Union, handles Czech M&A transactions daily for foreign clients operating across 90 countries. Our international network enables us to compare Czech procedures with your home jurisdiction's requirements and identify the critical differences that laypeople often overlook. With professional liability insurance covering damages up to CZK 500 million, ARROWS provides the security foreign investors need when navigating complex Czech corporate transactions. Need guidance on your planned acquisition? Contact us at office@arws.cz.

What transaction structures are available for Czech acquisitions?

Foreign investors can structure Czech acquisitions through two primary mechanisms: share deals or asset deals. The choice between these structures has profound implications for tax treatment, liability transfer, regulatory approvals, and transaction timelines.

Share deals involve purchasing the ownership interests in the Czech company itself. The buyer acquires all assets, liabilities, contracts, and legal relationships of the target company as they existed at closing. Share deals typically complete faster because they require fewer formalities—the share purchase agreement does not need registration in the Cadastral Register, and ownership transfers upon execution of the agreement (for limited liability companies) or registration with the Central Depository (for joint-stock companies). However, the buyer inherits all historical liabilities, including undisclosed tax obligations, environmental contamination, or employment disputes.

Asset deals allow selective acquisition of specific assets and liabilities, providing greater control over what the buyer assumes. The seller company continues to exist and retains liabilities not explicitly transferred. However, asset deals trigger higher transaction costs—VAT at 21% applies to most asset transfers within Czech territory, and registration in the Cadastral Register is mandatory for real estate transfers. Asset deals also require individual consent from counterparties if contracts contain assignment restrictions.

What appears as a straightforward structural choice actually involves intricate analysis of at least fifteen different legal and tax considerations. Czech tax law exempts capital gains on share sales if the seller held at least 10% for twelve consecutive months, but this exemption contains numerous exceptions and special rules for non-EU sellers that can dramatically alter your tax position. ARROWS analyzes your specific transaction to identify the optimal structure that minimizes regulatory burden while protecting you from hidden liabilities. For transaction structuring advice, reach out to office@arws.cz.

Czech competition authority merger control: Mandatory filings and penalties

Czech merger control operates under a mandatory pre-closing notification regime with strict standstill obligations. If your transaction meets the statutory thresholds, you cannot implement any aspect of the acquisition—including exchanging commercially sensitive information, integrating operations, or exercising control—until the Czech Office for the Protection of Competition issues its approval decision.

The notification thresholds trigger when the combined aggregate net turnover of all parties exceeds CZK 1.5 billion in the Czech Republic (approximately EUR 60 million) during the preceding accounting period. Additionally, at least two parties to the transaction must each have net turnover exceeding CZK 250 million in the Czech Republic. These thresholds apply to foreign-to-foreign transactions with no operations in the Czech Republic, as long as they affect Czech markets. ARROWS regularly assists international clients in calculating whether their transaction meets these complex thresholds—contact us at office@arws.cz for a threshold analysis.

Penalties for violations are severe and increasing. The ÚOHS recently imposed a fine of CZK 18.8 million (approximately EUR 752,000) on EP ENERGY TRADING for implementing a merger before clearance—a violation known as "gun-jumping". The maximum fine reaches 10% of the undertaking's total global net turnover. Even unintentional violations due to negligence can result in substantial penalties. Foreign investors often fail to recognize that seemingly innocent pre-closing activities—such as joint customer communications, shared strategic planning, or operational coordination—constitute prohibited implementation under Czech law.

The approval timeline ranges from 30 days for straightforward transactions to 90 days for complex mergers requiring deeper investigation. These deadlines are calculated in working days, not calendar days, and exclude periods when the ÚOHS requests additional information. In practice, foreign investors should plan for 2-4 months between filing and clearance. What complicates matters further is that the ÚOHS assessment examines not just market shares but also potential competition effects, vertical integration concerns, and conglomerate impacts that require sophisticated economic analysis beyond what most in-house counsel can provide.

Risks and Penalties	How ARROWS Helps (office@arws.cz)
Failure to notify a qualifying merger: Fine up to 10% of global turnover	Threshold analysis and notification assessment
Gun-jumping (implementing before clearance): Fine up to 10% of global turnover	Pre-closing compliance protocols and standstill agreement drafting
Providing false or misleading information: Administrative fines and potential withdrawal of approval	Preparation and verification of ÚOHS filing documents
Missing ÚOHS information requests: Procedural delays and potential fine[2]	Coordination of responses and communication with ÚOHS

Foreign investment screening: The hidden approval layer

Since May 2021, Czech law requires prior approval from the Ministry of Industry and Trade for certain foreign investments that could threaten national security or public order. This screening regime applies exclusively to non-EU investors whose ultimate beneficial owners are from countries outside the European Union, Iceland, Norway, Liechtenstein, and Switzerland.

The screening obligation triggers when a foreign investor acquires at least 10% of voting rights in a Czech company operating in sensitive sectors. These sectors include critical infrastructure, defense and military equipment, dual-use items, cybersecurity, artificial intelligence, semiconductors, and energy infrastructure. The Ministry maintains the authority to review any foreign investment within five years after completion if security concerns arise—even for investments that were not subject to mandatory notification.

The approval process typically takes 60-90 days but can extend to 120 days for complex cases. During this period, a standstill obligation applies—the foreign investor cannot implement the investment before receiving Ministry approval. Violations can result in fines up to 1% of the investor's total turnover and potential unwinding of the transaction.

What makes foreign investment screening particularly challenging for international acquirers is the lack of clear guidance on exactly what activities fall within "sensitive sectors." The legislation uses broad definitions that require case-by-case interpretation. ARROWS maintains direct relationships with Ministry officials and regularly navigates the consultation process to obtain legal certainty for foreign clients—particularly important since voluntary consultation can protect you from ex-post challenges. For foreign investment screening advice, write to office@arws.cz.

FAQ – Legal tips about regulatory approvals

Q1: Can we start integration planning while waiting for ÚOHS approval?

Integration planning is permissible, but be extremely careful about what information you exchange and how you coordinate. Sharing competitively sensitive data, making joint decisions about pricing or suppliers, or coordinating market strategies can constitute gun-jumping even if no formal ownership transfer occurs. ARROWS prepares clean team protocols and information firewalls to enable necessary planning without violating standstill obligations. Need a compliance protocol? Contact office@arws.cz.

Q2: What happens if we miss the ÚOHS notification deadline?

Filing late or failing to notify exposes you to fines up to 10% of global turnover and potential unwinding of the transaction. The ÚOHS actively pursues enforcement actions and has imposed increasingly large penalties in recent years. If you discover a potential notification failure, immediately contact ARROWS at office@arws.cz for remediation strategy.

Q3: Do we need separate approvals for EU merger control and Czech merger control?

Transactions meeting EU Merger Regulation thresholds are typically reviewed exclusively by the European Commission. However, the Commission can refer Czech aspects to the ÚOHS, and parties can request referral in certain circumstances. This determination requires sophisticated jurisdictional analysis that ARROWS handles daily. Contact us at office@arws.cz for merger control strategy.

Due diligence in Czech M&A: What foreign investors must verify

Thorough due diligence is not merely advisable—it's the only practical protection against inheriting catastrophic liabilities in share deals. Czech law provides limited post-closing remedies for undisclosed liabilities, making comprehensive pre-acquisition investigation essential. Foreign investors commonly underestimate the scope of due diligence required in the Czech legal environment, where historical privatizations, restitution claims, and complex corporate histories create hidden risk layers.

Legal due diligence must examine corporate structure and governance, ownership history and chain of title, material contracts and commercial relationships, real estate ownership and encumbrances, employment relationships and TUPE implications, litigation and disputes, regulatory compliance and licenses, intellectual property rights, and environmental liabilities. For real estate assets, investors must specifically verify the property's restitution history at the Czech State Land Office, as properties subject to historical restitution claims can still present title challenges decades after the Velvet Revolution.

Financial and tax due diligence complements legal review by uncovering hidden financial liabilities, off-balance-sheet obligations, contingent tax exposures, and historical tax assessment risks. Czech tax authorities can assess additional taxes for periods up to three years (or ten years in cases involving criminal activity), creating substantial contingent liabilities that only thorough investigation reveals.

GDPR compliance creates specific due diligence challenges in Czech M&A transactions. The seller must establish a secure data room with encryption, access controls, and audit logs before providing the buyer access to documents containing personal data. Buyers cannot receive complete employee contracts or customer lists without legal justification, requiring the preparation of anonymized summaries and sample contracts instead. Violations expose both parties to fines up to EUR 20 million or 4% of annual global turnover.

What foreign investors consistently underestimate is that Czech due diligence findings don't just inform pricing—they determine the entire warranty structure, indemnity scope, escrow amounts, insurance coverage, and post-closing adjustment mechanisms. Each discovered issue requires not just documentation but legal strategy for contractual protection. ARROWS coordinates comprehensive due diligence across legal, financial, tax, and technical workstreams, then translates findings into enforceable contractual protections. For due diligence management, contact office@arws.cz.

The share purchase agreement: Negotiating warranties and indemnities

The Share Purchase Agreement (SPA) forms the binding contract governing Czech M&A transactions. Foreign investors often approach SPA negotiation with expectations shaped by their home jurisdiction, only to discover that Czech law provides different default rules, remedy mechanisms, and enforcement options.

Seller warranties provide factual representations about the target company's legal, financial, and operational status. Czech SPA practice typically includes 15-25 warranty categories covering corporate organization, financial statements, tax compliance, material contracts, employment relationships, intellectual property, real estate, environmental compliance, and litigation. Unlike common law jurisdictions where extensive warranty disclosure schedules are standard, Czech practice often involves shorter warranty catalogues with negotiated caps and baskets limiting seller exposure.

Indemnities provide specific protection for identified risks that fall outside general warranty coverage. Common indemnity subjects include known tax disputes, pending litigation, environmental remediation obligations, and legacy liabilities. Indemnities typically survive longer than warranties and may not be subject to the same financial caps.

Limitation of liability mechanisms include survival periods (typically 18-36 months for general warranties), de minimis thresholds (minimum claim amounts), baskets (deductibles before claims become payable), and caps (maximum aggregate liability). Czech market practice has evolved toward seller-friendly limitation structures, particularly for private equity exits where sellers seek clean breaks.

Purchase price mechanisms require careful attention. Completion accounts mechanisms adjust the final price post-closing based on actual working capital and net debt at closing, providing buyer protection but requiring months of post-closing negotiations. Locked box mechanisms fix the price at a historical balance sheet date, transferring economic risk to the buyer but providing certainty and faster closing. Czech practice historically favored completion accounts (used in 91% of Czech transactions during 2011-2012), reflecting buyer-favorable market conditions. However, locked box mechanisms have gained popularity for private equity exits and seller-favorable markets.

Risks and Penalties	How ARROWS Helps (office@arws.cz)
Undisclosed liabilities discovered post-closing: Buyer bears full loss if warranties inadequate	Comprehensive warranty catalogue drafting based on due diligence findings
Warranty claims rejected due to knowledge qualifications or disclosure	Strategic disclosure schedule preparation
Indemnity claims time-barred due to short survival periods	Negotiation of appropriate survival periods and notification procedures
Seller refuses to pay valid claims due to insufficient escrow or no W&I insurance	Escrow structuring and W&I insurance arrangement
Locked box leakage reduces value between locked box date and closing	Comprehensive permitted leakage definitions and leakage protection mechanisms

Warranty and Indemnity insurance: Risk transfer for complex transactions

Warranty and Indemnity (W&I) insurance has become increasingly common in Czech M&A transactions, particularly for private equity exits and competitive auction processes. W&I insurance transfers warranty risk from the seller to an insurance policy, enabling sellers to achieve clean exits without escrow retention while providing buyers with enhanced protection and a creditworthy counterparty for claims.

Buyer-side W&I policies (the most common structure) protect the buyer against unknown breaches of seller warranties. The insurance policy typically covers 10-30% of the enterprise value, with a retention (deductible) of 0.5-1% of enterprise value. Premium costs range from 0.8-1.5% of policy limits. Seller-side policies protect the seller against warranty claims under the SPA, though these are less common in current practice.

Synthetic W&I insurance addresses transactions where sellers refuse to provide comprehensive business warranties or where traditional W&I insurance is unavailable. Synthetic policies insure specific identified risks rather than general warranty breaches, enabling transactions that would otherwise fail due to warranty gaps.

The underwriting process typically requires 2-4 weeks and involves insurer review of due diligence reports, draft SPA warranties, and disclosure schedules. Insurers expect comprehensive due diligence and relatively balanced warranty packages—W&I insurance does not replace due diligence or excuse inadequate investigation. Foreign investors should engage W&I insurers early in the transaction process, ideally during due diligence, to ensure insurability of key risks. ARROWS coordinates W&I insurance placement alongside transaction documentation. For W&I insurance advice, email office@arws.cz.

Czech labor law in M&A: TUPE transfer of employees

Czech labor law implements EU Directive 2001/23/EC on the transfer of undertakings (TUPE), automatically transferring employment relationships when a business or part thereof is sold. This mandatory protection applies to both asset deals and certain share deals where operational autonomy transfers.

When a TUPE transfer occurs, all employees working in the transferred undertaking automatically become employees of the buyer on their existing terms and conditions. The buyer inherits all rights and obligations under employment relationships, including accrued vacation, notice period obligations, and collective bargaining agreements. The TUPE transfer itself cannot serve as grounds for termination—any redundancies must be postponed until after the transfer and justified by independent business reasons.

Information and consultation obligations require both seller and buyer to inform affected employees at least 30 days before the effective transfer date. The information must cover the proposed transfer date, reasons for the transfer, legal and economic consequences for employees, and any measures envisaged regarding employees. Failure to comply can result in employee claims and administrative penalties.

A recent Czech Supreme Court decision created additional complexity by ruling that buyers must eliminate unjustified pay differences between transferred employees and existing employees within two months after the TUPE transfer. This "equalization obligation" means you cannot indefinitely maintain different compensation structures for employees performing similar work, even when those differences result from the legal transfer itself. Foreign investors often overlook this requirement, leading to discrimination claims and employee dissatisfaction.

What makes TUPE particularly complex in Czech M&A is identifying exactly which employees transfer. The determination depends on functional analysis of whether the transferred activities constitute an "undertaking" that retains its economic identity—not merely headcount allocation. This analysis requires detailed review of organizational structure, reporting relationships, asset allocation, and business continuity. ARROWS performs TUPE analysis during due diligence and structures employment transition plans to ensure compliance. For labor law advice, contact office@arws.cz.

Cross-Border Mergers and transformations: Simplified procedures under EU law

Recent amendments to the Czech Transformations Act have significantly streamlined cross-border mergers, divisions, and conversions involving Czech companies and EU/EEA entities. These changes implement EU Directive 2019/2121 and expand Czech companies' ability to restructure internationally.

Czech law now permits cross-border conversions not only within the EU/EEA but also to and from third countries, dramatically expanding restructuring options. Previously, such conversions were only possible within the EU/EEA framework. This expansion allows Czech subsidiaries of non-EU groups to relocate their registered office to align with group structure.

Simplified procedures reduce administrative burden for certain cross-border transactions. Companies can now prepare separate transformation reports for shareholders and employees (or omit these reports entirely if all shareholders consent or the company has no employees beyond statutory body members). Expert reports on cross-border mergers and divisions are no longer required if all shareholders agree. These simplifications can reduce professional costs by 30-50% for straightforward transactions.

Multiple transformations on a single decisive date are now explicitly permitted. A company can simultaneously spin off a division and merge it with another entity on the same date—a structure previously prohibited that can now achieve complex restructurings with single-event tax treatment.

Notary certification requirements for cross-border transformations introduce a new gatekeeping function. Notaries must issue cross-border transformation certificates confirming legal compliance before registration. If the notary suspects abusive or fraudulent purposes—such as circumventing employee rights, avoiding tax obligations, or facilitating criminal activity—they can refuse certification and request assistance from relevant public authorities.

What foreign investors must understand is that cross-border transformations, despite simplified procedures, remain highly technical undertakings requiring coordination across multiple jurisdictions, each with different timing requirements, approval procedures, and registration formalities. A single procedural error can invalidate the entire transformation or create unintended tax consequences. ARROWS manages cross-border transformations involving Czech entities daily, coordinating with foreign counsel and notaries to ensure seamless execution. For transformation planning, write to office@arws.cz.

FAQ – Most common legal questions about Czech M&A transactions

Q1: How long does a typical Czech M&A transaction take from initial contact to closing?

Transaction timelines vary dramatically based on complexity, regulatory requirements, and financing structure. Simple share deals with no regulatory approvals can close in 6-8 weeks. Transactions requiring ÚOHS merger control typically take 3-5 months. Deals involving foreign investment screening, cross-border elements, or complex restructurings often require 6-12 months. The critical path almost always involves regulatory approvals rather than negotiation or due diligence. ARROWS provides transaction timeline modeling based on your specific structure. Contact us at office@arws.cz for timeline assessment.

Q2: What happens if we discover undisclosed liabilities after closing?

Your recourse depends entirely on SPA warranty coverage, survival periods, and limitation mechanisms. Without explicit warranties covering the discovered liability, Czech law provides minimal protection—caveat emptor (buyer beware) remains the fundamental principle. Even with warranties, you must typically prove: (1) the warranty was breached; (2) you lacked knowledge of the breach; (3) the claim exceeds minimum thresholds; (4) you notified within survival periods; and (5) damages exceed any deductible basket. This is precisely why comprehensive due diligence and carefully drafted warranties are essential. ARROWS structures warranty packages to maximize post-closing protection. Need warranty drafting? Email office@arws.cz.

Q3: Can we structure the acquisition through installment payments or earn-outs?

Absolutely. Czech law permits flexible purchase price structures including deferred payments, seller financing, and earn-out mechanisms tied to future performance. However, each structure creates different security, tax, and accounting implications that require careful planning. Earn-outs require precisely defined financial metrics, calculation methodologies, and dispute resolution procedures—vague earn-out formulas generate extensive post-closing litigation. ARROWS drafts earn-out mechanisms with clear calculation examples and binding dispute resolution to avoid conflicts. For purchase price structuring advice, contact office@arws.cz.

Q4: Do we need to notify customers or suppliers about the acquisition?

Legal requirements depend on your transaction structure and contract terms. Many commercial contracts contain change-of-control provisions requiring counterparty consent for ownership changes. Failure to obtain required consents can result in automatic contract termination—potentially devastating if key supplier or customer relationships are essential to the business. Even without contractual requirements, practical considerations often warrant proactive communication to maintain business relationships and prevent customer flight. ARROWS conducts contract review during due diligence to identify consent requirements and manages notification processes. Need contract review? Write to office@arws.cz.

Q5: What taxes apply to Czech M&A transactions?

Tax treatment varies dramatically based on transaction structure. Share deals can qualify for participation exemption (no capital gains tax on qualifying disposals of at least 10% held for 12 months) but require careful analysis of exemption conditions. Asset deals trigger VAT at 21% on most assets, corporate income tax at 19% on seller gains, and potential real estate transfer implications. Dividend repatriation from Czech subsidiaries faces 15% withholding tax (reduced or eliminated under tax treaties and EU Parent-Subsidiary Directive). Real estate transfer tax was abolished in 2020, eliminating the previous 4% transfer tax burden. The tax analysis alone involves at least 20 different considerations that can swing transaction economics by millions of crowns. ARROWS coordinates with specialized tax advisors to optimize transaction tax structure. For tax structuring, contact office@arws.cz.

Q6: Should we use a letter of intent before negotiating the definitive agreement?

Letters of intent (LOI) or term sheets serve valuable functions in Czech M&A practice by establishing basic transaction parameters, securing exclusivity periods, and confirming confidentiality obligations before incurring substantial transaction costs. Most LOI provisions remain non-binding (allowing parties to walk away if negotiation reveals deal-breaking issues) while specific provisions—particularly exclusivity, confidentiality, break-up fees, and expense allocation—become legally binding. The challenge lies in clearly distinguishing binding from non-binding provisions and avoiding inadvertent contractual commitments through ambiguous drafting. ARROWS prepares LOIs that protect your negotiating position while preserving flexibility. Need an LOI drafted? Email office@arws.cz.

Post-Closing integration: The overlooked success factor

More than 70% of M&A integrations fail to realize planned synergies due to inadequate integration planning and execution. Foreign investors often focus intensely on deal negotiation and closing, then dramatically underestimate the management resources, time commitment, and systematic planning required to actually capture transaction value.

Successful integration requires Day One readiness—the merged entity must operate without business disruption from the moment closing occurs. This requires advance planning for IT system access, payment processing, customer service continuity, supplier relationships, employee communications, and regulatory compliance reporting. Foreign acquirers often discover that their Czech target uses entirely different ERP systems, banking relationships, or quality control procedures that cannot simply be "switched over" on closing day.

The first 100 days after closing prove critical because employees expect changes and remain open to new approaches during this window. Changes implemented in the first 100 days succeed at far higher rates than those introduced later when organizations revert to habitual patterns. Priority initiatives typically include: establishing integrated governance and reporting structures, communicating vision and integration plan to all employees, achieving quick wins that demonstrate transaction value, standardizing critical processes and controls, and validating long-term integration plans.

Integration governance structures must be established before closing to coordinate activities across functions. Integration Management Office (IMO) structures provide the dedicated focus, resources, and decision-making authority needed to drive integration through completion. Without formal governance, integration initiatives fragment across departments, lose momentum, and fail to deliver synergies.

What foreign investors consistently overlook is that integration challenges in Czech acquisitions often involve not just operational and systems issues but fundamental cultural and communication differences. Czech business culture emphasizes consensus-building, relationship maintenance, and procedural compliance in ways that differ substantially from Anglo-American management approaches. Imposing foreign management styles without cultural adaptation generates employee resistance and management turnover. ARROWS provides post-closing integration support including legal entity consolidation, contract migration, license transfers, and employment transitions. For integration planning, contact office@arws.cz.

Risks and Penalties	How ARROWS Helps (office@arws.cz)
Business disruption on Day One due to inadequate readiness planning	Pre-closing integration planning and Day One checklist preparation
Key employee departures due to poor communication or cultural misalignment	Employee communication strategy and retention program design
Synergy targets missed due to execution failures]	Integration project management and milestone tracking
Regulatory compliance failures during transition periods	License transfers and regulatory notification management
Customer losses due to service disruption or contract migration issues	Contract assignment and customer notification coordination

Why foreign investors choose ARROWS for Czech M&A transactions

Czech M&A transactions involve intricate legal procedures, multiple regulatory approvals, complex tax considerations, and countless opportunities for costly errors. What appears straightforward in summary—sign an SPA, obtain ÚOHS approval, close the transaction—actually encompasses dozens of specialized legal steps, each with specific formal requirements, deadlines, and consequences for non-compliance.

ARROWS law firm handles Czech M&A transactions daily for foreign clients operating across 90 countries. This international practice provides us unique perspective on how Czech procedures differ from other jurisdictions and where foreign investors consistently encounter unexpected obstacles. We combine deep Czech legal knowledge with international business understanding, enabling us to translate complex Czech requirements into practical guidance for foreign executives.

ARROWS supports over 150 joint-stock companies and 250 limited liability companies, regularly handling transactions ranging from small asset acquisitions to complex cross-border mergers. Our established relationships with the Czech Competition Authority, Ministry of Industry and Trade, Commercial Register courts, and other Czech regulators enable efficient navigation of approval processes. We are regular partners of in-house legal departments for handling specialized Czech M&A matters.

Professional liability insurance covering damages up to CZK 500 million provides the financial security foreign investors require when relying on legal advice for multi-million euro transactions. When you engage ARROWS, you obtain not just legal expertise but also balance sheet protection.

Our international network, ARROWS International, operates in 90 countries globally, enabling seamless coordination of cross-border transactions involving Czech entities. We regularly connect clients with complementary business or investment interests, facilitating strategic partnerships and deal flow.

Czech M&A transactions are substantially more complex than they initially appear. Individual procedural steps that seem simple contain hidden exceptions, statutory deadlines, formal requirements, and connections to other regulations that laypeople cannot see without daily practice experience. Professional execution by experienced Czech M&A counsel significantly reduces your risk of errors, delays, penalties, and post-closing disputes while dramatically reducing the management time you must devote to transaction execution.

If you are planning a Czech acquisition, merger, or corporate restructuring, ARROWS provides comprehensive M&A legal services including:

• Transaction structure optimization and tax planning
• Comprehensive legal, financial, and tax due diligence coordination
• Regulatory approval management (ÚOHS, Ministry of Industry and Trade)
• Share Purchase Agreement and Asset Purchase Agreement drafting and negotiation
• Warranty and indemnity insurance placement
• Employment transfer planning and TUPE compliance
• Cross-border merger and transformation implementation
• Commercial Register filings and post-closing corporate housekeeping
• Post-closing integration legal support
• Representation before Czech regulatory authorities and courts

Do not risk errors, damages, or regulatory penalties by attempting to navigate Czech M&A procedures without experienced local counsel. ARROWS law firm, based in Prague, European Union, stands ready to guide your Czech acquisition from initial strategy through post-closing integration—minimizing your risk and maximizing your transaction success.