Merger & Acquistions
Mergers and acquisitions is one of the best processes of corporate restructuring that has gained substantial prominence in the present day corporate world. Restructuring usually means major changes and modifications in the corporate strategies and beliefs. This shift in strategic alliances is done with a desire to have an edge over competitors, eventually creating a new economic paradigm. Businesses across the corporate world have only two options in hand to expand their operation and gain substantial profits. One way is to grow through internal expansion by means of introducing new technologies, altering the course of operations, enhancing work performance, and establishing new lines of products or services. Through this business grow gradually over time but the new strategy of external expansion has completely changed the business sector across the world. This external expansion takes place in the form of merger, acquisitions, takeovers, and amalgamations, dramatically supporting the globalization of businesses.
Merger, acquisitions, takeovers, and amalgamations have become essential components of business restructuring. The process brings separate companies together to form a larger enterprise and increase economies of scale. The increasing popularity of it is attributed to high-end competition and breaking of trade barriers. This expansion is either done through absorption or consolidation. Absorption is a condition in which two or more companies come together to perform operations in an existing company whereas in case of consolidation, companies come together and create a completely new entity for their combined operations.
In the present day business world, the procedure is hugely being used across various industrial segments including telecommunication, hospitality, pharmaceuticals, and information technology. All the industrial progresses are based on external expansion and look ahead to expand their customer base, gain credibility, and break all barriers in the market segment. We, at Aristocrat Legal Solutions, serve clients ranging from investment banks, companies and large corporate groups in merger and acquisition deals. Irrespective of the size of the deal, we ensure that our clients benefit from our experience and handling. We advise on structuring mergers and acquisition including structuring issues, drafting transactional documents, etc.
We advise companies on methods of restructuring including joint ventures, mergers, acquisitions, demerger / spin-off a division into a separate company, buy-back of shares, leveraged buyouts, slump sale, reduction in share capital, winding-up and repatriation of the proceeds. We also advise on tax benefits available to companies after restructuring. We conduct due diligence for companies before going for mergers and acquisitions including intellectual property due diligence. We draft Share Purchase Agreements, Shareholders Agreements, Joint Venture Agreements, non-compete and non-disclosure agreement, escrow agreement, stock swap agreement etc. We also draft scheme of arrangements for companies to be placed before High Courts.