Mergers and acquisition are transactions in which the ownership of companies, other business organization or their operating units are either transferred or combined as an aspect of strategic management. Mergers and acquisition allow enterprises to grow, shrink, change the nature of their businesses or improve their competitive position.
Mergers and acquisitions can also be perceived as a term that means the combining of companies or assets for a more efficient and effective unit. There are at least two companies that are involved in this consolidation for it to actually happen. There is a known confusion about this as “mergers and acquisitions” are more often used synonymously. However, these two mean various things, although they both are dealing with corporate law mergers and acquisitions.
Our merger and acquisition attorneys have industry expertise across almost all sectors, including:
Mergers, as true to its name, means that two companies that are usually of comparable size agree to join together as one. This means that both are equal partners. More often than not, the names of the two firms are also joined together to create a new organization. Following are the types of Mergers:
Conglomerate mergers have two types, pure and mixed conglomerate. The former is composed of two firms that do not have anything in common. The latter is composed of two companies that are searching for extending their market, products or services.
This is a kind of merger that involves companies that offer the same goods and services. They are often competitors. It is believed that firms that merge together in the same industry tend to have a greater market share.
This type of merger has two companies that offer the same products but they cater to different markets. The purpose of merging them together is to have a larger client base.
Two firms that have related products and in the same market are joined together in this type of merger. When these two companies merge together, they can have the opportunity to deal with a larger client base for higher gain and profits.
Vertical Merger deals with two companies that produce the goods or services for certain a finished product. They are in different levels of the supply chain in their industry, but they are merged for the purpose of having more cooperation that can be brought in by those two companies to the table, ensuring that their operations are more effective than before.
The acquisition has two terms to take note of and to understand it more: buyer and target company. The former is the one that takes over the latter, making itself the new owner. This is called an acquisition, the buyer absorbing the other firm. The target company stops existing and its stocks are also stopped in being traded. On the other hand, the stocks of the buyer continue to be traded.
On other terms, acquisition can also mean a company purchasing another, like a big firm taking in a small one. Unlike mergers, there is no new company that comes out of the acquisition. The target company or the one that is acquired by the other stops existing and its assets join the ones that the buying company already has.
To establish the difference between mergers and acquisition, a new company emerges from the merging of two companies with equal shares while in an acquisition, a buying company completely consumes the other company.
There are legal things that must be dealt with when it comes to either mergers and acquisition. Merger lawyer or business acquisition lawyer in UAE is available to take care of the legal matters that should be handled.
Mergers and acquisitions are quite complex exercises that involve detailed planning and execution. Here is what one can expect when working with HHS Lawyers:
At HHS Lawyers, we understand the complexity of mergers and acquisitions in the UAE. Our Mergers and Acquisition lawyers have all the knowledge required to guide you through the different stages of a transaction. We work closely with our clients in developing a strategy that best suits their business aims, reducing associated legal risks.
Our comprehensive services in mergers and acquisitions include the following:
Choosing the right legal partner in any merger and acquisition transaction is very important. The following benefits set HHS Lawyers apart:
Mergers and acquisitions can prove to be game-changers for your business, but they require expert legal guidance and advice to attain success. This is where the law firm HHS Lawyers comes in; the best team of experienced mergers and acquisitions attorneys will assist you at each step of the way. Be it expanding your business through acquisitions or seeking strategic mergers, we hold the knowledge and experience for achieving the same.
Contact our mergers and acquisitions lawyers in the UAE today. We walk you through your business goals seamlessly and without a hitch.