{"id":4950,"date":"2024-08-22T14:32:48","date_gmt":"2024-08-22T12:32:48","guid":{"rendered":"https:\/\/marszalekipartnerzy.pl\/uncategorized\/mergers-and-acquisitions-of-companies-in-business-law-what-is-worth-knowing-about-them\/"},"modified":"2024-08-22T14:32:48","modified_gmt":"2024-08-22T12:32:48","slug":"mergers-and-acquisitions-of-companies-in-business-law-what-is-worth-knowing-about-them","status":"publish","type":"post","link":"https:\/\/marszalekipartnerzy.pl\/en\/news\/mergers-and-acquisitions-of-companies-in-business-law-what-is-worth-knowing-about-them\/","title":{"rendered":"Mergers and acquisitions of companies in business law.\nWhat is worth knowing about them?"},"content":{"rendered":"

Why do mergers and acquisitions happen and how can a law firm help you?<\/span><\/h1>\n

The M&A market in Emerging Europe is growing quite rapidly.
\nIn 2023 alone, nearly 1,200 M&A (merger and acquisition) transactions have been recorded. <\/span>Mergers and Acquisitions<\/span><\/i>).
\nCo sprawia, \u017ce przedsi\u0119biorcy decyduj\u0105 si\u0119 na fuzj\u0119 przedsi\u0119biorstw lub przej\u0119cie firmy?
\nCzy warto decydowa\u0107 si\u0119 na wsparcie kancelarii prawnej? <\/span><\/p>\n

What are mergers and acquisitions in business law?<\/span><\/h2>\n

Structural changes within companies are one way to strengthen a company’s market position.
\nThe assets of all merging companies accumulate, allowing for more extensive investments. <\/span><\/p>\n

In practice, M&A transactions can be planned in one of two ways:<\/span><\/p>\n

    \n
  • The merger of two or more companies to form a new company;<\/span><\/li>\n
  • The takeover of a weaker market participant by a stronger one, to whom the assets of all the merging entities pass.<\/span><\/li>\n<\/ul>\n

    A merger can occur through an acquisition or the formation of a new company, while a takeover, understood literally, seeks to annex an entity through the purchase of shares.<\/span><\/p>\n

    Although theoretically the rules for carrying out mergers and acquisitions are regulated by the Commercial Companies Code, in practice each such transaction looks quite different.
    \nThe terms of the transaction are set individually, and the effectiveness of the entire process depends on correctly identifying the specifications of the operation.
    \nThat is why it is so important, among other things.
    \nA thorough due diligence (possibly vendor due diligence, depending on who will initiate the merger). <\/span><\/p>\n

    What can a company gain from a merger or acquisition?<\/span><\/h2>\n

    Mergers and acquisitions of companies bring many benefits – provided they are carefully planned and properly executed.
    \nWhat are the most common motives behind M&A decisions? <\/span><\/b><\/p>\n

      \n
    • Aiming to increase the reach of the business conducted and strengthen the market position<\/b><\/li>\n<\/ul>\n

      Merging two companies operating in the same industry allows for faster expansion and reaching new customer segments and markets.
      \nRestructuring also helps better defend against the actions of unfair competition and increases the entity’s resilience to market fluctuations. <\/span><\/b><\/p>\n

        \n
      • Strive to increase liquidity<\/b><\/li>\n<\/ul>\n

        Increasing the scale of operations contributes to an increase in the value of an enterprise.
        \nAs a result, it is easier to implement new business initiatives or obtain financing on favorable terms.
        \nA new entity can earn a higher return on its operations while reducing margins and fees. <\/span><\/b><\/p>\n

          \n
        • Simplifying the business structure<\/b><\/li>\n<\/ul>\n

          The merger of several entities into one results in increased management efficiency, as it eliminates the links between full-fledged market participants.
          \nThe fewer these ties, the easier it is to manage the company and model it to the needs of investors. <\/span><\/b><\/p>\n

            \n
          • Faster development<\/b><\/li>\n<\/ul>\n

            M&A transactions also promote technological development.
            \nThrough the passage of trademarks, industrial designs, patents or copyrights, the portfolio of products and services offered can be expanded.
            \nThis, in turn, makes business more competitive. <\/span><\/p>\n

            How does the M&A transaction process work step by step?<\/span><\/h2>\n

            Investors are often interested in the course of M&A.
            \nHowever, years of practice show that there is no single recipe for restructuring.
            \nHowever, it is possible to isolate a kind of algorithm of action that will look similar in each case. <\/span><\/p>\n

            Stage one – the preparatory phase<\/span><\/h3>\n

            Each transaction begins by determining whether the operation is to involve all of the company’s assets, or perhaps only a portion of the company.
            \nThe seller also decides whether to: <\/span><\/p>\n

              \n
            • share deal – that is, the sale of shares in a company;<\/span><\/li>\n
            • asset deal – that is, the transfer of company assets.<\/span><\/li>\n<\/ul>\n

              Stage two – due diligence investigation<\/span><\/h3>\n

              Due diligence plays a critical role in the merger or acquisition process.
              \nBefore companies decide to voluntarily merge or an acquisition takes place, the parties to the transaction should conduct an audit of the legal and business risks associated with the planned operation. <\/span><\/p>\n

              Stage three – negotiation and contract signing<\/span><\/h3>\n

              Before a deal is signed, the parties negotiate its terms, working out the best strategy to follow.
              \nEven the biggest deal can be doomed by a simple mistake, which is why using professional help at each stage of M&A is important from the very beginning. <\/span><\/p>\n

              Stage four – contract execution<\/span><\/h3>\n

              The implementation of M&A is not only the sale of shares or stocks.
              \nSometimes it will be necessary to obtain the approval of the antitrust authority for the acquisition of control, the transfer of specific assets (e.g., real estate, business, IP rights), or the consent of majority shareholders or corporate bodies. <\/span><\/p>\n

              Stage five – integration of business cultures<\/span><\/h3>\n

              It is not enough to merge two companies together for them to start operating smoothly. It is essential to have the so-called. PMI (Ang. <\/span>Post-Merger Integration<\/span><\/i>). It aims to merge the business by linking together the management sphere and individual departments, such as marketing, IT, production or finance, and ensure that business processes run smoothly.<\/span><\/p>\n

              How does our law firm support companies in M&A?<\/span><\/h2>\n

              It is worth remembering that the acquisition of one company by another is not mathematics, and it does not come down to the fact that the value of the shares of the new company is added to the assets of the existing one.<\/span>Specialists who deal with M&A processes on a daily basis talk about the <\/span>the synergy effect<\/b>. It’s a situation where two businesses combined will produce an effect greater than each would have separately. A wisely conducted M&A provides just this surplus – otherwise it will be just a simple transfer of assets.<\/span><\/p>\n

              The law firm Marsza\u0142ek & Partners provides its clients with comprehensive assistance that translates into increased value for their business. Get support from experienced advisors who will conduct a financial and legal analysis and guide your company through it step by step.<\/span><\/p>\n

              Meta title: corporate mergers and acquisitions in business law. What is worth knowing about them?<\/span><\/p>\n

              Meta description: corporate mergers or acquisitions in commercial law – what are M&A transactions, how are they conducted and what is the role of a law firm in them?<\/span>Link to analysis in Contad:<\/span>https:\/\/app.contadu.com\/analysis\/content-preview\/5989e20cadbc9b61\/f8ffd92020f34945479066ffda89d1825d3<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

              Why do mergers and acquisitions happen and how can a law firm help you? The M&A market in …<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[12],"tags":[],"class_list":["post-4950","post","type-post","status-publish","format-standard","hentry","category-news"],"acf":[],"_links":{"self":[{"href":"https:\/\/marszalekipartnerzy.pl\/en\/wp-json\/wp\/v2\/posts\/4950","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/marszalekipartnerzy.pl\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/marszalekipartnerzy.pl\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/marszalekipartnerzy.pl\/en\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/marszalekipartnerzy.pl\/en\/wp-json\/wp\/v2\/comments?post=4950"}],"version-history":[{"count":0,"href":"https:\/\/marszalekipartnerzy.pl\/en\/wp-json\/wp\/v2\/posts\/4950\/revisions"}],"wp:attachment":[{"href":"https:\/\/marszalekipartnerzy.pl\/en\/wp-json\/wp\/v2\/media?parent=4950"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/marszalekipartnerzy.pl\/en\/wp-json\/wp\/v2\/categories?post=4950"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/marszalekipartnerzy.pl\/en\/wp-json\/wp\/v2\/tags?post=4950"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}