Mergers and Acquisition
Nowadays many companies adopt the merger and acquisition strategies to grow their business. Companies Act 2013, defines the term merger as the combination of two or more business entities to make a new entity. The acquisition, on the other hand, is one company taken over by the other. A merger is basically done for the purpose of expansion of the business unit.
Whereas in the acquisition, an existing company or new acquires the other company with an agreement is called the acquisition. Merger and acquisition help to generate better capital and increases the operational efficiency of the companies.
For Merger and Acquisition, The Companies Act, 1956 and 2013 need to be followed. Many parties (Court, SEBI, Official Liquidator, the Regional Director of the MCA) are involved, therefore, the process is long and problematic. Hence, it is wise to consult an expert for the merger and acquisition advisory.
Taxolawgy can offer Merger and acquisition advisory to the clients, and can assist in the following areas:
- Appraising and evaluating companies
- Designing and executing an acquisition strategy
- Introducing probable buyers or sellers
- Providing supervision for the timing of specific transactions
- Developing and formulating offering memorandums
- Negotiation of sale agreements or terms of a purchase
- Intermediating the compromise of compensation agreements with management teams
- Negotiating agreements with capital sources for deal funding