The transfer of a business is a common occurrence in the banking and financial sector. But as soon as a foreign player enters the picture, a key question arises: how can we guarantee the validity and clarity of the translation? If you work in an international environment, you know that there's no room for approximation.
Why business transfers must be carefully translated
Whether it's to sell a branch of activity to a foreign entity, restructure a group or meet a regulatory requirement, the sale of a business often involves the production of bilingual documentation. This type of document is fraught with legal, tax and contractual consequences.
Even a minor translation error can lead to :
- the rejection of a file by a foreign authority,
- a dispute over the interpretation of a key clause,
- or question the validity of the transaction.
Dense content with legal and terminological implications
Business divestiture documents often contain asset and liability warranties, earn-out mechanisms, non-competition undertakings and other complex provisions.
Every term counts. The translation of concepts such as transfer of undertakings, carve-out, assignment of assets, or share purchase agreement must faithfully reflect the law applicable in each jurisdiction concerned.
This requires :
- a perfect command of comparative legal systems,
- in-depth knowledge of financial and contractual terminology,
- and the ability to adapt the form of the document to local standards (presentation, style, signatures).
Example: a business transfer subject to validation by a foreign tax authority
Let's take the case of a French group selling an operating subsidiary to an Italian company. The sale contract, initially drafted in French, must be presented to the Italian tax authorities as part of the transaction declaration.
A literal translation is not enough. Certain French concepts, such as "garantie de passif", must be transposed into their Italian equivalent, taking into account local tax law. Otherwise, the tax authorities may consider the document inaccurate or even invalid. This type of risk could result in a tax reassessment or sanctions.
Why call in legal translation experts
In such a sensitive context, you can't entrust the translation of a business transfer to a general translator. You need a legal professional, trained in international issues, capable of dialoguing with your lawyers and tax specialists.
At Legal 230, we work on this type of document every week, with translators specialized in banking, financial and tax law, able to adapt their translation to the target market, while respecting your deadlines and confidentiality.
Entrust us with your sensitive translations
Are you dealing with a business transfer involving a foreign jurisdiction? Do you need a legal translation that is reliable, accurate and in line with local requirements?
Call on Legal 230: our network of expert legal translators in 230 languages guarantees you a result that lives up to the challenge.
👉 Contact our team for a quick quote or to discuss your project.