STRUCTURING, 05Aut. 10077274 · 142 Boulevard de la Pétrusse, Luxembourg

Acquisition structuring in Luxembourg, vehicle, financing and exit.

Acquisition structuring sets up the acquisition vehicle (often a SOPARFI), its equity and debt financing, and prepares an efficient exit, within the ATAD interest limitation rule. FSL designs the structure, substance, accounting and compliance; legal opinions and reserved acts are coordinated with our partner lawyers and notaries.

In short

Acquisition structuring organises the purchase of a target through a Luxembourg vehicle: vehicle selection and incorporation, equity/debt mix, interest treatment, and preparation of a future disposal (participation exemption on the gain).

Legal basis

Vehicle governed by the law of 10 August 1915; participation exemption on the exit gain art. 166 LIR; interest deduction limitation rule art. 168bis LIR from ATAD; transfer pricing documentation on the financing.

Key takeaway

  • The Luxembourg acquisition vehicle is generally a SOPARFI.
  • Interest deductibility is framed by art. 168bis LIR (ATAD).
  • The exit can benefit from the participation exemption on the gain.

Who this is for

  • Private equity funds and investors
  • Groups pursuing acquisitions
  • Buyers (MBO, build-up)
  • Family offices co-investing in deals

What we do

  • Set-up of the acquisition vehicle (SOPARFI)
  • Financing structuring (equity, debt, hybrid instruments)
  • Interest and deduction-limitation scoping (art. 168bis LIR)
  • Exit preparation and capital-gain exemption
  • Accounting, post-acquisition integration and compliance

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Preparation checklist

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FAQ

Frequently asked questions

Which vehicle for an acquisition?
Most often a SOPARFI, which holds the target, carries the financing and benefits from the participation exemption on the future disposal gain.
Can acquisition financing interest be deducted?
Within the interest deduction limitation rule (art. 168bis LIR) transposed from ATAD, and subject to transfer pricing. We scope the equity/debt mix accordingly.
How is the exit prepared?
By structuring ownership so the shares can be sold while benefiting, under conditions, from the capital-gains exemption (art. 166 LIR).
Do you carry out the acquisition deeds?
We structure and coordinate; legal and notarial acts are handled by our partner lawyers and notaries.
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