{"id":2720,"date":"2021-02-25T06:55:43","date_gmt":"2021-02-25T06:55:43","guid":{"rendered":"https:\/\/swaritadvisors.com\/blog\/?p=2720"},"modified":"2021-02-25T06:58:39","modified_gmt":"2021-02-25T06:58:39","slug":"types-of-company-takeover","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/blog\/types-of-company-takeover\/","title":{"rendered":"Types of Company Takeover: A Guide on Different Takeovers"},"content":{"rendered":"\n<p class=\"has-drop-cap\">In today\u2019s era, businesses are facing a lot of challenges in the form of competition, technologies, and dynamism. Therefore, to sustain their existence and strengthen their market position and financial performance, they undergo several structural modifications. The most preferable growth oriented strategy is <a class=\"text-primary\" href=\"https:\/\/swaritadvisors.com\/company-takeover\"><strong>Company Takeover<\/strong><\/a>. In this blog, we will talk about the concept and types of company takeover.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3abc29dc39b\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3abc29dc39b\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/swaritadvisors.com\/blog\/types-of-company-takeover\/#Concept_of_Company_Takeover\" title=\"Concept of Company Takeover\">Concept of Company Takeover<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/swaritadvisors.com\/blog\/types-of-company-takeover\/#Benefits_of_Company_Takeover\" title=\"Benefits of Company Takeover\">Benefits of Company Takeover<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/swaritadvisors.com\/blog\/types-of-company-takeover\/#Governing_Laws_for_Different_Types_of_Company_Takeover\" title=\"Governing Laws for Different Types of Company Takeover\">Governing Laws for Different Types of Company Takeover<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/swaritadvisors.com\/blog\/types-of-company-takeover\/#Section_230_11_of_the_Companies_Act_2013\" title=\"Section 230 (11) of the Companies Act 2013\">Section 230 (11) of the Companies Act 2013<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/swaritadvisors.com\/blog\/types-of-company-takeover\/#Section_250_3_of_the_Companies_Act_2013\" title=\"Section 250 (3) of the Companies Act 2013\">Section 250 (3) of the Companies Act 2013<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/swaritadvisors.com\/blog\/types-of-company-takeover\/#Section_261_of_the_Companies_Act_2013\" title=\"Section 261 of the Companies Act 2013\">Section 261 of the Companies Act 2013<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/swaritadvisors.com\/blog\/types-of-company-takeover\/#Securities_Exchange_Board_of_India_Substantial_Acquisition_of_Shares_Takeover_Regulation_2011\" title=\"Securities Exchange Board of India (Substantial Acquisition of Shares &amp;\nTakeover) Regulation 2011\">Securities Exchange Board of India (Substantial Acquisition of Shares &amp;\nTakeover) Regulation 2011<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/swaritadvisors.com\/blog\/types-of-company-takeover\/#Reasons_for_Choosing_Company_Takeover\" title=\"Reasons for Choosing Company Takeover\">Reasons for Choosing Company Takeover<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/swaritadvisors.com\/blog\/types-of-company-takeover\/#Different_Types_of_Company_Takeover\" title=\"Different Types of Company Takeover\">Different Types of Company Takeover<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/swaritadvisors.com\/blog\/types-of-company-takeover\/#Reverse_Takeover\" title=\"Reverse Takeover\">Reverse Takeover<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/swaritadvisors.com\/blog\/types-of-company-takeover\/#Bail_Out_Takeover\" title=\"Bail Out Takeover\">Bail Out Takeover<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/swaritadvisors.com\/blog\/types-of-company-takeover\/#Friendly_Takeover\" title=\"Friendly Takeover\">Friendly Takeover<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/swaritadvisors.com\/blog\/types-of-company-takeover\/#Hostile_Takeover\" title=\"Hostile Takeover\">Hostile Takeover<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/swaritadvisors.com\/blog\/types-of-company-takeover\/#Backflip_Takeover\" title=\"Backflip Takeover\">Backflip Takeover<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/swaritadvisors.com\/blog\/types-of-company-takeover\/#Consideration_for_Different_Types_of_Company_Takeover\" title=\"Consideration for Different Types of Company Takeover\">Consideration for Different Types of Company Takeover<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/swaritadvisors.com\/blog\/types-of-company-takeover\/#In_the_form_of_Cash\" title=\"In the form of Cash\">In the form of Cash<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/swaritadvisors.com\/blog\/types-of-company-takeover\/#In_the_form_of_Shares\" title=\"In the form of Shares\">In the form of Shares<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/swaritadvisors.com\/blog\/types-of-company-takeover\/#By_Forming_a_New_Company\" title=\"By Forming a New Company\">By Forming a New Company<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/swaritadvisors.com\/blog\/types-of-company-takeover\/#Procedure_for_Different_Types_of_Company_Takeover\" title=\"Procedure for Different Types of Company Takeover\">Procedure for Different Types of Company Takeover<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/swaritadvisors.com\/blog\/types-of-company-takeover\/#Pass_Board_Resolution\" title=\"Pass Board Resolution\">Pass Board Resolution<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/swaritadvisors.com\/blog\/types-of-company-takeover\/#File_Application_to_Commission\" title=\"File Application to Commission\">File Application to Commission<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/swaritadvisors.com\/blog\/types-of-company-takeover\/#Registration_of_the_Proposed_Takeover_Bid\" title=\"Registration of the Proposed Takeover Bid\">Registration of the Proposed Takeover Bid<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/swaritadvisors.com\/blog\/types-of-company-takeover\/#Send_the_Takeover_Bid\" title=\"Send the Takeover Bid\">Send the Takeover Bid<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/swaritadvisors.com\/blog\/types-of-company-takeover\/#Convene_a_Board_Meeting\" title=\"Convene a Board Meeting\">Convene a Board Meeting<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/swaritadvisors.com\/blog\/types-of-company-takeover\/#File_Takeover_Report\" title=\"File Takeover Report\">File Takeover Report<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-26\" href=\"https:\/\/swaritadvisors.com\/blog\/types-of-company-takeover\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Concept_of_Company_Takeover\"><\/span>Concept of Company Takeover<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The term Company Takeover means a process in which one business entity acquires control over another <a href=\"https:\/\/en.wikipedia.org\/wiki\/Category:Types_of_business_entity\">business entity<\/a>. Further, the term control means purchasing the majority stake in another business entity.<\/p>\n\n\n\n<p>The company that acquires the Majority Stake is termed as the Acquirer or Bidder, and the company whose control or majority stake is acquired is termed as the Target Company.<\/p>\n\n\n\n<p><strong>Also, Read:<\/strong> <mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/learning\/7-steps-to-takeover-a-company-in-india\/\">7 Steps to Takeover a Company In India<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Benefits_of_Company_Takeover\"><\/span>Benefits of Company Takeover<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The key benefits of Company Takeover are as follows:<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/02\/Assists-in-Increasing-the-Business-Size.png\" alt=\"Benefits of Company Takeover\" class=\"wp-image-2724\" width=\"700\" height=\"268\" srcset=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/02\/Assists-in-Increasing-the-Business-Size.png 1000w, https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/02\/Assists-in-Increasing-the-Business-Size-300x115.png 300w, https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/02\/Assists-in-Increasing-the-Business-Size-768x295.png 768w\" sizes=\"(max-width: 700px) 100vw, 700px\" \/><\/figure><\/div>\n\n\n\n<ul><li>Assists in Increasing\nthe Business Size;<\/li><li>Reduces Market\nCompetition;<\/li><li>Facilitates\nseveral Tax Benefits; <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Governing_Laws_for_Different_Types_of_Company_Takeover\"><\/span>Governing Laws for Different Types of Company Takeover<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The governing laws for different types of Company Takeover are as follows:<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/02\/Section-230-11-of-the-Companies-Act-2013.png\" alt=\"Governing Laws for Different Types of Company Takeover\" class=\"wp-image-2726\" width=\"671\" height=\"244\" srcset=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/02\/Section-230-11-of-the-Companies-Act-2013.png 953w, https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/02\/Section-230-11-of-the-Companies-Act-2013-300x109.png 300w, https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/02\/Section-230-11-of-the-Companies-Act-2013-768x280.png 768w\" sizes=\"(max-width: 671px) 100vw, 671px\" \/><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Section_230_11_of_the_Companies_Act_2013\"><\/span><strong>Section 230 (11) of the Companies Act 2013<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Every\nform of Compromise and Arrangement is covered under this section.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Section_250_3_of_the_Companies_Act_2013\"><\/span><strong>Section 250 (3) of the Companies Act 2013<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>According to the provisions of this section, NCLT\n(National Company Law Tribunal) has the power to direct any company\nadministrator to takeover the management and assets of that company.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Section_261_of_the_Companies_Act_2013\"><\/span><strong>Section 261 of the Companies Act 2013<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>According to the provisions of this section, NCLT\nauthorises the appointed company administrator to prepare the scheme of\nRehabilitation and Revival, comprising of the takeover of a sick entity by a\nsolvent company.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Securities_Exchange_Board_of_India_Substantial_Acquisition_of_Shares_Takeover_Regulation_2011\"><\/span>Securities Exchange Board of India (Substantial Acquisition of Shares &amp;\nTakeover) Regulation 2011<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The provisions of the SEBI (Substantial Acquisition\nof Shares &amp; Takeover) Regulation 2011 governs the process of Takeover of a\nlisted company.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Reasons_for_Choosing_Company_Takeover\"><\/span>Reasons for Choosing Company Takeover<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The reasons for choosing the process of Company Takeover\nare as follows:<\/p>\n\n\n\n<ul><li>To achieve\nproduct development, market improvement, and advanced technologies of the\ntarget company;<\/li><li>To expand the\nexisting product line;<\/li><li>To boost the\nproductivity and profitability of the acquirer company;<\/li><li>To increase the\nmarket size for the acquirer company;<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Different_Types_of_Company_Takeover\"><\/span>Different Types of Company Takeover<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The different types of Company Takeover are as follows:<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" loading=\"lazy\" src=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/02\/Reverse-Takeover-1024x450.png\" alt=\"Different Types of Company Takeover\" class=\"wp-image-2725\" width=\"698\" height=\"306\" srcset=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/02\/Reverse-Takeover-1024x450.png 1024w, https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/02\/Reverse-Takeover-300x132.png 300w, https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/02\/Reverse-Takeover-768x337.png 768w, https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/02\/Reverse-Takeover.png 1154w\" sizes=\"(max-width: 698px) 100vw, 698px\" \/><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Reverse_Takeover\"><\/span>Reverse Takeover<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Whenever a <strong><a href=\"https:\/\/swaritadvisors.com\/private-limited-company-registration\" class=\"text-primary\">private limited company<\/a><\/strong> decides to lists its equity shares on a recognised stock exchange, but do not wish to undergo the process of Initial Public Offer, it undertakes the process of Reverse Takeover. Under this type of company takeover, a private limited company acquires shares of a public listed company.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Bail_Out_Takeover\"><\/span>Bail Out Takeover<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>In a Bail out Takeover, a profit making company\nacquires a sick entity to bail it out from the procedure of liquidation.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Friendly_Takeover\"><\/span>Friendly Takeover<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>When the acquirer or bidder company obtains the\nconsent of the target company prior to undergoing the course of Takeover, the\nsame is known as the Friendly Takeover. Thus, it is a process wherein both the\nparties mutually agree to the stipulations and conditions of a takeover.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Hostile_Takeover\"><\/span>Hostile Takeover<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Hostile Takeover is completely opposite from a\nFriendly Takeover. Under this concept, the acquirer company does not take prior\npermission from the target company and forcefully practises the process of\ntakeover.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Backflip_Takeover\"><\/span>Backflip Takeover<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>In the case of Backflip Takeover, an acquirer\ncompany chooses to become the subsidiary of the Bidder or Target Company.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Consideration_for_Different_Types_of_Company_Takeover\"><\/span>Consideration for Different Types of Company Takeover<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The consideration for different types of Company\nTakeover are as follows:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"In_the_form_of_Cash\"><\/span>In the form of Cash<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>When the acquirer or bidder company pays the consideration\nin form of cash, for the shares acquired of the target company.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"In_the_form_of_Shares\"><\/span>In the form of Shares<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>When the acquirer company decides to pay the\nconsideration by allotting its equity shares to shareholders or members of the\ntarget company. The same will be done in proportion to their previous\nshareholding.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"By_Forming_a_New_Company\"><\/span>By Forming a New Company<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>A bidder company can form a new company by acquiring\nequity shares of the target company. Thereafter, the shareholders of both the\nentities are allotted equity shares of the newly structured company.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Procedure_for_Different_Types_of_Company_Takeover\"><\/span>Procedure for Different Types of Company Takeover<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The steps involved in the procedure for different\ntypes of Company Takeover are as follows:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Pass_Board_Resolution\"><\/span>Pass Board Resolution<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The directors of a bidder company need to pass a\nBoard Resolution (BR) to approve the process of bidding for the shares of the\nTarget Company.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"File_Application_to_Commission\"><\/span>File Application to Commission<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>In the next step, the company needs to file an\napplication with the commission for the approval of Takeover Bid. Further, the\nsaid application must be filed with the attachments as follows:<\/p>\n\n\n\n<ul><li>Takeover Bid;<\/li><li>No Objection\nCertificate (NOC) from the relevant government authority;<\/li><li>Information\nMemorandum;<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Registration_of_the_Proposed_Takeover_Bid\"><\/span>Registration of the Proposed Takeover Bid<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Once the company has received approval from the\nauthorities, the bidder company requires to file an application to get the\nproposed takeover bid registered with the commission.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Send_the_Takeover_Bid\"><\/span>Send the Takeover Bid<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>After obtaining registration, in the next step, the\nbidder company will send the takeover bid to the target company.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Convene_a_Board_Meeting\"><\/span>Convene a Board Meeting<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Further, the target company will hold a board\nmeeting to accept that 90% of its shareholding is subject to acquisition.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"File_Takeover_Report\"><\/span>File Takeover Report<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Once the process of Company Takeover is complete,\nthe bidder company needs to file a takeover report with the commission within\nseven days from the conclusion of Takeover.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p> In a nutshell, Company Takeover is the most preferable growth oriented strategy, in which one corporate entity purchases the majority stake in another corporate entity. Further, the parties involved in a takeover are Acquirer and Target Company. Also, there are five different types of company takeover, and for each of them one needs to follow the process mentioned above.<\/p>\n\n\n\n<p><strong>Also, Read:<\/strong> <mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/learning\/an-ultimate-company-takeover-checklist-for-a-successful-acquisition\/\">An Ultimate Company Takeover Checklist \u2013 for a Successful Acquisition<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In today\u2019s era, businesses are facing a lot of challenges in the form of competition, technologies, and dynamism. Therefore, to sustain their existence and strengthen their market position and financial performance, they undergo several structural modifications. The most preferable growth oriented strategy is Company Takeover. In this blog, we will talk about the concept and [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":2721,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[426,64],"tags":[427],"acf":[],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/2720"}],"collection":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/comments?post=2720"}],"version-history":[{"count":7,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/2720\/revisions"}],"predecessor-version":[{"id":2731,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/2720\/revisions\/2731"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media\/2721"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media?parent=2720"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/categories?post=2720"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/tags?post=2720"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}