Merger and acquisition

Merger and acquisition

Mergers & acquisitions are very popular lately. Developed economies like Europe, the US, Japan, etc are in corporate mergers & acquisitions regularly. Corporate strategies in India have also started adopting mergers and acquisitions. Merger implies combining two organizations into one. Whereas acquisition implies one organization buying or absorbing another one.

 

Proper structuring of the mergers & acquisition deal is our expertise. The factors that we consider while formulating a deal are antitrust laws, corporate laws, tax implications, market conditions, specific negotiation points, sorts of financing, accounting issues, rival bidders, securities regulations, etc. We make sure that the impact of of these factors is taken into account while formulating the deal.

 

Though mergers and acquisitions are always used as synonyms but they are doing have a serious difference in them.

Mergers imply combining of two similar size companies and form a replacement single entity. just in case of merger, one or more of the prevailing entities loses its identity and ceases to exist and another entity or new company clubbs assets and liabilities of the merged company in its budget .

Whereas, just in case of acquisition, none of the businesses into transactions close . Rather, the buying company obtains controlling stake into the selling company. However, the legal entity of both companies remains an equivalent . Buying company obtains control into the acquired company through buying controlling shares then continues the corporate with its changed management.