Enabling Start-ups Carefully Navigating the Legal Waters To Successful Mergers & Acquisitions
Mergers and acquisitions (M&A) is the area of corporate finances, management, and strategy dealing with purchasing and/or joining with other companies. As the companies involved are typically of similar size and stature, the term “merger of equals” is sometimes used.
When two companies combine to form a single entity, it is called a merger. For example, when Company A and Company B combine and form Company AB it is a merger. Lately formed new entity ‘Vodafone Idea Limited’ is a good example of a merger in which Vodafone India merged with Idea Cellular.
Documentation does not play an important role, not only in mergers and acquisitions but as a form of legal binding. M&A procedures have a myriad of documents that are introduced along the process in different stages. While some documents may or may not be legally enforceable, they ensure a solid foundation to work upon.
This non-binding document is the beginning of a merger and acquisition transaction. The relevance of this document is sometimes not perceived by the seller. The seller has to consider this document with the same diligence that he makes for other documents in the transaction.
After this are the acquisition documents. Parties in the transaction will enter into an acquisition agreement which is a binding document. The acquisition agreement contains the terms of the deal entered between parties.
Amendments to the articles of incorporation of the surviving company are essential. This includes the issuance of any new class of shares if any according to the acquisition agreement, change in the name of the company if any, any change in the purpose clause, expansion details by the company if any, etc.
Further documents are introduced in the later stages of the merger and acquisition process. Photon Legal guides you through this journey with utmost diligence and care to ensure there are no loose ends.
Our team of experts counts on years of experience in dealing with mergers and acquisitions for start-ups. The important goal for us always remains to ensure the companies stay legally fortified in the process of creating a singular organization.
Photon Legal team acts as the end-to-end legal consultant during mergers and acquisitions. Our expertise ensures the best interests of our clients are safeguarded.
The list of required documentation during a merger or acquisition is endless. With a new set of documents that get incorporated into the process at every stage, Photon Legal helps draft and formulate the successful organization of these documents
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