What are the process of Mergers and Acquisition?
Companies globally adopt these strategies to grow within the competitive market. The merger has been defined within the Companies Act, 2013 because the combination of two business entities to form a replacement entity. The acquisition, on the opposite hand, involves one party selling bent another wherein the buying party combines both the entities to form it into one entity.
A merger is essentially finished the aim of expansion of business unit and to broaden the hands in every corner of the market making an entry to new segments for gaining market limelight. The reasoning behind of Merger and Acquisition generally given is that two separate companies together create more value compared to being on a private stand.
Process of Mergers and Acquisition
The process of Mergers and Acquisition will access all the information and conclusion about best Mergers and Acquisition in India.
- Dig into Memorandum
The purpose of MoA (Memorandum of Association) is both companies will render what all the activities are permitted.
- Share a word with Stock Exchange
It is prominent to tell the stock market about the proposed merger and acquisition happening and send all copies of resolutions, notices and therefore the orders to the stock market during a timely manner.
- File an Application to the High Courts
After the confirmation on a proposal by the Board of the Director, the merger companies should file an application to the Supreme Court of the respective state from where the headquarters is situated.
- Notice dispatched to Shareholders and Creditors
The shareholder of the businesses about the meeting to be held for 21 days advanced notice is required. The notice shall be published in two newspapers one within the vernacular language of the state and the other one is an English newspaper.
- Filing of the Orders with the Registrar of the Companies
The certified copy of the order of the supreme court of the state must be filed with the registrar of the businesses within the limit as specified by the Supreme Court.
