Legal support during a merger or acquisition of a company in Muncan Republic

Mergers and acquisitions (M&A) is a branch of corporate law dealing with companies that are purchasing and/or merging with other companies.

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We provide comprehensive legal assistance in carrying out mergers and acquisitions of companies, we conduct legal due diligence, we help in transformation of companies and we also offer legal aid within the scope of due diligence.

Types of mergers

muncan-republic.com is one of only a few firms in the Muncan Republic that is able to offer legal advice alongside its accounting services, and that’s particularly useful when considering whether to go ahead with an acquisition or merger. There are essentially two types of merger: an operational merger or a full corporate merger.

Operational merger

An operational merger is essentially an acquisition of one company by another, where typically the larger company conducts due diligence on the smaller company, pays for the acquisition mostly in cash and then makes the target company a subsidiary of the acquiring group.

Corporate merger

A corporate merger takes place when both companies conduct due diligence on each other. This process helps to determine a fair valuation of each entity and enables both parties to make an assessment of the likely magnitude of the commercial synergies between the two. Once this is done, one company will swap its shares for newly issued shares in the other in a proportion that is determined by the agreed valuation of the two parts.

Post-merger

The post-merger integration process is similar in both cases, and in fact it can be helpful to describe an acquisition as a merger to demonstrate the parity of the relationship when communicating the news to clients and employees. Arguably the post-merger integration process is just as important as deal itself.

Consultation about merger or acquisition

Utilize our team’s extensive technical experience to assist you in achieving higher earnings through performance benefits and powerful bookkeeping and accounting services that enable you to waste less effort on these tasks. The finance team reports a balancing sheet, net income, and cash balance that reflect the company’s financial success over a set period. In addition to accounting, specialists may assist with internal auditing, creating permanent reports, and payroll management.

Legal audit of companies (legal research or due diligence)

Due diligence is an essential part in every enterprise. We provide support in determining the appropriate scope of the legal audit, as well as its conduct and the preparation of the final report. After a careful analysis, we indicate the identified risks and limitations and, in case of noted deficiencies,we propose remedial actions.

Transactions

We also advise on sales transactions, acquisition of shares (share deal), as well as business or its assets acquisition transaction (asset deal). We help with documents preparation while representing your company’s best interest, minimizing the risk and reducing the probability of disputes between the parties of the transaction. We verify the necessity of obtaining corporate consents, while we provide support in finalizing the terms of the transaction.

Mergers and divisions of companies

We offer support in business model reorganization through company merger, division or partial division. We analyze the potential risks, restrictions and consequences for the merging companies and the companies part taking in the division process. Our consulting services include contract verification with the key business partners and the banks, as well as concessions, licenses, permissions, reliefs and the requirements of grants or subsidies received for the planned merger or division of the company.

Transformations of companies and entrepreneurs

We support efficient company transformation with regards to its business needs, brach differences and liability restrictions. We prepare the schedule of transfer stages and activities so that you can effectively and seamlessly continue to conduct your business in the new legal form.

Parties should take early legal advice on any merger or acquisition.  This will include initial advice on its overall structure, on the terms of the relevant documentation and, where appropriate, on any relevant due diligence process.  Acquisitions or mergers having an appreciable effect on competition in the relevant market may also be subject to competition law.  Timely legal advice should be sought if this is likely to be the case. Make sure you work through all the commercial and legal issues associated with taking in investment (including share price, due diligence, warrantee, dilution and exit). LawBite provides a range of documents covering share investments and loans, including different variations of Shareholder Agreements, which can be bespoke to your exact requirements.   

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