Merger And Acquisition in India: A Comprehensive Guide

Merger And Acquisition in India: A Comprehensive Guide

Under The Companies Act, 2013, various provisions governed Merger and Acquisition, yet a precise definition remained elusive. Traditionally, Merger and Acquisition were distinct concepts. Merger occurred when two companies of comparable size amalgamated to form a new entity, while Acquisition involved one company absorbing another by acquiring a majority stake.

Advantages of Merger and Acquisition

Types of Merger and Acquisition
Merger:

Acquisition:

Structure of Merger and Acquisition

Three structuring options were available:

Parties Involved in Merger and Acquisition

Various parties played crucial roles, including lawyers, bankers, investment banks, government, regulatory bodies, external agencies, and international bodies.

Basic Steps for Merger and Acquisition Process

Conclusion

While Mergers and Acquisitions offered tax benefits and financial assistance amid intense market competition, they also posed risks such as business conflicts and employee turnover. Entities considering Merger and Acquisition should conduct thorough verification to ensure gains without significant losses.

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