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Merger & Acquisition

The Mergers and Acquisitions (commonly and popularly abbreviated as M & A) are elegant means for a better and more profitable corporate restructuring other than establishing subsidiaries or joint ventures, in the same or different fields, and in the national or international arenas and business. These mergers, acquisitions, amalgamations, and takeovers, have become more common and popular now-a-days in countries all across the world, for rapid business expansion, capturing larger customer base and market share, beat intense competition, maximize profits, and venture into new fields of business. Hence, the merger & acquisition is a visionary and strategic corporate decision for company’s growth, expansion, efficiency, and maximal profitability. These descriptions are meant for answering what is merger and acquisition, and outlining the great importance of it. The merger & acquisition is being followed in almost all traditional and modern business fields and practices, as per the concerned mergers & acquisitions law, including the fields of information technology, business process outsourcing, telecommunication, etc.

Our prompt and rather cost-effective support is available for all types of mergers and acquisitions in India and abroad, including the mergers through absorption, mergers through consolidation, horizontal mergers, vertical mergers, and conglomerate mergers.

Basic Requisites For Merger & Acquisition

Any merger & acquisition requires comprehensive and mature consideration and deliberation. All major and vital areas of corporate management, business, compliances, productivity, efficiency, and profitability, etc., are to be meticulously analyzed, before making a merger & acquisition. The following are the main and most important considerations essentially included in any merger and acquisition checklist, before or during the merger and acquisition process:

  • Why the need for a merger & acquisition
  • Benefits to be obtained from any proposed merger & acquisition
  • Type of merger & acquisition in the same or different businesses or fields
  • Searching and screening of suitable companies, for this M & A purpose
  • Financial Evaluation
  • Taxation and tax liabilities of new company formed after merging
  • Risks involved
  • Whether any legal cases or litigation are pending
  • Status of shareholders, company’s liabilities, public obligations, etc.
  • Any loans or contracts committed by the company being merged
  • Past trends and records of the company, especially financial and commercial
  • And, other matters of due diligence and legal compliance

Law For Merger & Acquisition

The mergers and acquisitions law differs from country to country more or less, depending upon the type and nature of company’s business, type and size of company, the category of proposed merger & acquisition, and so on. The main aim of the mergers and acquisitions law is to govern and regulate the process of merging and acquisition, to protect the interests of the concerned shareholders, and to make the dealing more transparent and fair lawfully.

In India, the laws regulating mergers and acquisitions are the following:

  • The Companies Act, 1956
  • The Competition Act, 2002
  • The Income Tax Act, 1961
  • The Foreign Exchange Management Act (FEMA), 1999
  • The Securities and Exchange Board of India (SEBI)

We help well-rounded businesses, industries, institutions, and corporations of all sectors of business and profession in the accomplishment of any types of merger & acquisition, in India and abroad, from beginning to the end of the merger and acquisition process.