Mergers And Acquisition In India

With the FDI policies becoming more liberalized, in recent years, India has seen a tremendous growth in mergers and acquisitions. The increasing volume is witnessed in various sectors like that of finance, pharmaceuticals, telecom, FMCG, industrial development, automotives etc. Mergers and acquisition refers to a situation when two and more companies joined together to form a new company or merger with an existing company. The assets and liabilities of the transferor company become the assets and liabilities of the transferee company after the merger. There are only two ways by which business houses expand their operation and gain substantial profits. One way is to grow through internal expansion by introducing new technologies, establishing new lines of products or services, changing course of operation etc. But the new strategy of external expansion has changed the business sector. This external expansion takes place in the form of merger, acquisitions, takeovers, and amalgamations, and gives a global exposure. Motives behind Mergers of the company economies of scale: increased production will lead to decrease in average per unit cost of production, increased revenue /increased market share, cross selling, also, when a more profitable company is acquired by a less profitable, then, profits are distributed amongst each and tax burden can be transferred. We are widely recommended as one of the best lawyers in Mumbai for Mergers & Acquisitions. We can handle a full range of transactions such as acquisitions and dispositions of privately owned companies, divisions and subsidiaries, takeover bids, joint ventures and strategic alliances; and substantial equity investments, mergers and schemes of arrangement/amalgamation. Lawyers at the Firm have assisted clients in restructuring transactions and drafting of transaction documents, drafting of shareholders agreement, joint venture agreements, non-compete and non-disclosure agreement, escrow agreement, stock swap agreement and share purchase agreements, advising on takeover code, drafting of scheme for merger, demerger and amalgamation & approaching courts for their sanction to the scheme and offering post-acquisition legal advice.