To get to the basics right, here is a short definition:
Merger: a merger occurs when two separate entities combine to create a new, joint organization.
Acquisition: an acquisition refers to the takeover of one entity by another.
Mergers and acquisitions may be completed to expand a company’s reach or gain market share in an attempt to create shareholder value.
To get into any merger/acquisition, the following has to be done:
The board of directors for each company must initially pass a resolution adopting a plan of merger/acquisition that specifies –
The names of the companies that are involved
The name of the proposed merged company
The manner of converting shares of both companies
Any other legal provision to which the companies agree
Each company notifies all of its shareholders that a meeting will be held to approve the merger.
If the proper number of shareholders approves the plan, the directors sign the papers and file them with the state.
The secretary of state issues a certificate of merger to authorize the new company.
Spectrum Audit is an expert in the M & A process. We will help in establishing corporate M & A. Reach us to have a frills free life in your journey in Dubai or any of the Emirates in UAE. We at Spectrum will assist you in taking care of all the legal procedures involved in the M & Aprocess of your company whether in the mainland or any free zone. Our role starts from guiding you with the established laws till the last procedure is completed.
Call us today for any kind of assistance, call us at +971 4 2699329 or email us at firstname.lastname@example.org to get all your queries addressed. Spectrum is your partner in your success.