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Legal guides written by Tekin Law Firm:
Acquisition and leveraged finance is a specialized area of law that focuses on funding the purchase of companies, assets, or business units, often using significant amounts of borrowed money. In Istanbul, Turkey, this field is particularly dynamic due to the country’s growing market, strategic location, and a high level of activity involving both domestic and cross-border transactions. Law firms in Istanbul support clients ranging from multinational corporations to mid-market enterprises and private equity investors, guiding them through complex legal, regulatory, and financial environments when structuring and executing leveraged buyouts, acquisitions, or recapitalizations.
There are several situations where legal expertise in acquisition or leveraged finance becomes essential in Istanbul. Some of the most common scenarios include:
A qualified lawyer can protect your interests, help you understand the risks and obligations, and ensure compliance with local legislation.
Acquisition and leveraged finance transactions in Istanbul are subject to a unique combination of Turkish laws and, in cross-border deals, sometimes relevant international standards. Key legal considerations include:
Your lawyer’s deep understanding of these areas is crucial for structuring deals successfully and avoiding regulatory pitfalls.
Leveraged finance refers to using borrowed capital to finance acquisitions, typically with the target company’s assets and cash flow serving as collateral for the lenders under Turkish law.
Yes, foreign investors can participate, but they must comply with Turkish foreign investment and sector-specific regulations, and in some cases, obtain prior approvals.
Lenders are commonly granted pledges over shares, mortgages on real estate, commercial enterprise pledges, and assignments of receivables, depending on the structure of the transaction.
Cross-border deals are subject to both Turkish law and applicable foreign law. Restrictions may apply regarding foreign currency loans, and local law security arrangements often need to be in place.
Yes, Turkish law limits financial assistance by a target company in connection with the acquisition of its own shares, primarily to protect creditors and minority shareholders.
Approvals may be needed from the Competition Authority, the Capital Markets Board, sectoral regulators, or, in some cases, from the Banking Regulation and Supervision Agency (BDDK).
The timing varies depending on complexity and whether regulatory approvals are required, but transactions can typically take several weeks to a few months to close.
Yes, certain documents and contracts in connection with the financing may be subject to stamp duty, and other tax implications may arise. Consulting a tax advisor is recommended.
Lenders have recourse to enforce their security, which may involve court proceedings or alternative dispute resolution methods, subject to the terms of the loan agreements and Turkish law.
It is strongly advised to engage a Turkish lawyer with cross-border experience to navigate local regulations, ensure valid security arrangements, and address any jurisdictional issues.
For those seeking further information or regulatory guidance, the following institutions and organizations can be helpful:
These organizations provide guidance, regulatory updates, and, in some cases, public registers and helpful publications relevant to acquisition and leveraged finance.
If you are considering or involved in an acquisition or leveraged finance transaction in Istanbul, the following steps can help protect your interests and ensure success:
A proactive legal approach can minimize risks, maximize deal value, and help ensure a smooth acquisition or financing experience in Istanbul’s dynamic business environment.
