Mergers & Acquisition Advisory

The entire process of mergers and acquisitions operated in India is court driven. There is a lot of strict documentation process to be followed in a complete legitimate manner. This could be long drawn but with adequate guidance and support from the professionals, it turns out to be simplified and fast-paced. The process initiation can be performed under the guidance of professionals through common agreements signed between both the parties. However, to turn it legitimate, legal cover needs to be added to it. This can only take place with the sanction of the High Court, after which the deal comes into effect.

The process of merger might sound difficult if not performed under expert guidance however, it can be simplified under professional hands. The first step towards the process is by drafting a “Merger Proposal”. After which, the Board of the Director of both the parties will provide an affirmation on the draft. Later, the merger proposition is evaluated and the resolution is passed for approval to the key administrative staffs and other administrators for further processing. However, the entire process remains incomplete without the approval from the High Court.

There are a number of leading “Consulting & Advisory” firms that can help their clients as an advisory body to perform a step-by-step process of merger or acquisition in India. This validates for all cross-industry or cross-border deals with roots in India. These firms help in guiding and managing the overall documentation for the same, as well.

M&As are popularly being performed with the key point of consolidating the key sectors including banking, insurance, IT, telecommunications, and e-commerce with the aim to attaining economies of scale, higher market share, and gaining advantage of new technologies and talents. The scope of the M&A covers various business aspects under the company acquisitions and sale of companies and its assets such as- it’s pricing, business valuation, negotiation, transactions structuring, and procedure and process implementation.

Most of the time M&A benefits the entire business across different verticals. However, companies can opt for mergers for benefiting their shareholders as they will receive shares in the newly merged company, post the merger. Companies can also benefit in terms of gaining access to new markets or diversifying their products and services, offered at a consequently increasing profit range.