{"id":2843,"date":"2021-03-01T07:18:44","date_gmt":"2021-03-01T07:18:44","guid":{"rendered":"https:\/\/swaritadvisors.com\/blog\/?p=2843"},"modified":"2021-03-01T07:18:47","modified_gmt":"2021-03-01T07:18:47","slug":"procedure-for-mergers-and-acquisitions","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/blog\/procedure-for-mergers-and-acquisitions\/","title":{"rendered":"Procedure for Mergers and Acquisitions: A Simplified Guide"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Nowadays, every company wish to reach greater heights and want to expand its business operations. As a result, they tend to undergo the procedure for Mergers and Acquisitions. However, the term <strong><a href=\"https:\/\/swaritadvisors.com\/mergers-and-acquisitions\" class=\"text-primary\">Mergers and Acquisitions<\/a><\/strong> are often considered as one, but the same are two different concepts, the former is carried out to increase goodwill, business growth, and customer reach. In contrast, the later one denotes an act wherein the acquirer or the bidder company acquires a target company through a legal document.<\/p>\n\n\n\n<p>In this blog, we will cover the concept and\nprocedure for Mergers and Acquisitions.<\/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-6a2b26526b9aa\" 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-6a2b26526b9aa\"  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\/procedure-for-mergers-and-acquisitions\/#Benefits_of_the_Procedure_for_Mergers_and_Acquisitions\" title=\"Benefits of the Procedure for Mergers and Acquisitions\">Benefits of the Procedure for Mergers and Acquisitions<\/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\/procedure-for-mergers-and-acquisitions\/#Laws_Governing_the_Procedure_for_Mergers_and_Acquisitions\" title=\"Laws Governing the Procedure for Mergers and Acquisitions\">Laws Governing the Procedure for Mergers and Acquisitions<\/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\/procedure-for-mergers-and-acquisitions\/#Points_to_Consider_for_Mergers_and_Acquisitions\" title=\"Points to Consider for Mergers and Acquisitions\">Points to Consider for Mergers and Acquisitions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/swaritadvisors.com\/blog\/procedure-for-mergers-and-acquisitions\/#Different_Types_of_Mergers\" title=\"Different Types of Mergers \">Different Types of Mergers <\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/swaritadvisors.com\/blog\/procedure-for-mergers-and-acquisitions\/#Horizontal_Merger\" title=\"Horizontal Merger\">Horizontal Merger<\/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\/procedure-for-mergers-and-acquisitions\/#Vertical_Merger\" title=\"Vertical Merger\">Vertical Merger<\/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\/procedure-for-mergers-and-acquisitions\/#Co-centric_Merger\" title=\"Co-centric Merger\">Co-centric Merger<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/swaritadvisors.com\/blog\/procedure-for-mergers-and-acquisitions\/#Conglomerate_Merger\" title=\"Conglomerate Merger\">Conglomerate Merger<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/swaritadvisors.com\/blog\/procedure-for-mergers-and-acquisitions\/#Cash_Merger\" title=\"Cash Merger\">Cash Merger<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/swaritadvisors.com\/blog\/procedure-for-mergers-and-acquisitions\/#Forward_Merger\" title=\"Forward Merger\">Forward Merger<\/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\/procedure-for-mergers-and-acquisitions\/#Reverse_Merger\" title=\"Reverse Merger\">Reverse Merger<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/swaritadvisors.com\/blog\/procedure-for-mergers-and-acquisitions\/#Detailed_Procedure_for_Mergers_and_Acquisitions\" title=\"Detailed Procedure for Mergers and Acquisitions\">Detailed Procedure for Mergers and Acquisitions<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/swaritadvisors.com\/blog\/procedure-for-mergers-and-acquisitions\/#Examine_the_MOA\" title=\"Examine the MOA \">Examine the MOA <\/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\/procedure-for-mergers-and-acquisitions\/#Notify_the_Recognised_Stock_Exchange\" title=\"Notify the Recognised Stock Exchange\">Notify the Recognised Stock Exchange<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/swaritadvisors.com\/blog\/procedure-for-mergers-and-acquisitions\/#Drafting_of_the_Merger_Proposal\" title=\"Drafting of the Merger Proposal\">Drafting of the Merger Proposal<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/swaritadvisors.com\/blog\/procedure-for-mergers-and-acquisitions\/#Furnish_Application_with_High_Court\" title=\"Furnish Application with High Court\">Furnish Application with High Court<\/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\/procedure-for-mergers-and-acquisitions\/#Dispatch_Notice_to_Shareholders\" title=\"Dispatch Notice to Shareholders\">Dispatch Notice to Shareholders<\/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\/procedure-for-mergers-and-acquisitions\/#File_Order_to_ROC\" title=\"File Order to ROC\">File Order to ROC<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/swaritadvisors.com\/blog\/procedure-for-mergers-and-acquisitions\/#Merging_of_Assets_and_Liabilities\" title=\"Merging of Assets and Liabilities \">Merging of Assets and Liabilities <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/swaritadvisors.com\/blog\/procedure-for-mergers-and-acquisitions\/#Listing_of_Shares\" title=\"Listing of Shares\">Listing of Shares<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/swaritadvisors.com\/blog\/procedure-for-mergers-and-acquisitions\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Benefits_of_the_Procedure_for_Mergers_and_Acquisitions\"><\/span>Benefits of the Procedure for Mergers and Acquisitions<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The key benefits of the Procedure for Merger and Acquisitions 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\/03\/Assists-in-Increasing-Companies-Net-Worth-1-1024x284.png\" alt=\"Benefits of the Procedure for Mergers and Acquisitions\" class=\"wp-image-2845\" width=\"717\" height=\"198\" srcset=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/03\/Assists-in-Increasing-Companies-Net-Worth-1-1024x284.png 1024w, https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/03\/Assists-in-Increasing-Companies-Net-Worth-1-300x83.png 300w, https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/03\/Assists-in-Increasing-Companies-Net-Worth-1-768x213.png 768w, https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/03\/Assists-in-Increasing-Companies-Net-Worth-1.png 1500w\" sizes=\"(max-width: 717px) 100vw, 717px\" \/><\/figure><\/div>\n\n\n\n<ul><li>Assists in Increasing Companies Net Worth;<\/li><li>Reduces Market Competition;<\/li><li>Helps in Gaining Competitive Edge;<\/li><li>Facilitates Formation of Synergies;<\/li><li>Attracts Large Customer Base;<\/li><li>Provides various Tax Benefits;<\/li><li>Allows Set off of Losses against Earned Profits;<\/li><li>Increase Market Reach;<\/li><li>Offers Better Sales Prospects;<\/li><\/ul>\n\n\n\n<p><strong>Also, Read:<\/strong> <mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/blog\/benefits-of-mergers-and-acquisitions\/\">What are the Benefits of Mergers and Acquisitions?<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Laws_Governing_the_Procedure_for_Mergers_and_Acquisitions\"><\/span>Laws Governing the Procedure for Mergers and Acquisitions<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The laws governing the procedure for Mergers and\nAcquisitions are as follows:<\/p>\n\n\n\n<ul><li>Companies (Compromises, Arrangements, and Amalgamations) Rules 2016;<\/li><li>Companies Act 2013;<\/li><li>Securities Exchange Board of India 1992;<\/li><li>The <a href=\"https:\/\/www.sebi.gov.in\/\">SEBI<\/a> (Substantial Acquisition of Shares and Takeovers) Regulations 2011;<\/li><li>The SEBI (Delisting of Equity Shares) Regulations 2009;<\/li><li>Foreign Exchange Management Act 1999;<\/li><li>Competition Act 2002;<\/li><li>Income Tax Act 1961;<\/li><li>Insolvency and Bankruptcy Code 2016;<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Points_to_Consider_for_Mergers_and_Acquisitions\"><\/span>Points to Consider for Mergers and Acquisitions<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The points to consider for the process of mergers\nand acquisitions are as follows:<\/p>\n\n\n\n<ul><li>The Company must pre-determine its aim and objective before undergoing the procedure for Mergers and Acquisitions;<\/li><li>The parties involved must sort out all the resolvable issues, such as Financial Liabilities, Sharing of Assets, Deal Pricing, before hand;<\/li><li>It shall be noted that the acquirer company must always undergo the process of <strong><a href=\"https:\/\/swaritadvisors.com\/due-diligence\" class=\"text-primary\">Due Diligence<\/a><\/strong> to understand the significant terms of the target company, such as <strong><a href=\"https:\/\/swaritadvisors.com\/income-tax-return-filing\" class=\"text-primary\">ITR Filing<\/a><\/strong>, Transfer Pricing, and other miscellaneous tax liabilities;<\/li><li>It shall be again noted that the acquirer company must always check and assess the insurance policies pertaining to Intellectual Property, General Liability, and Employee Liability, as offered by the Target Company. The reason behind the same is to determine whether such policies will be beneficial for the acquirer company or not;<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Different_Types_of_Mergers\"><\/span>Different Types of Mergers <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The\ndifferent types of Mergers prevalent in India are as follows:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Horizontal_Merger\"><\/span>Horizontal Merger<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Whenever two or more companies, which are dealing in\nthe same nature of products, decide to combine with each other, the same is\nknown as Horizontal Merger.<\/p>\n\n\n\n<p>The main benefits of this type of merger are reduced\ncompetition, increased market reach, expanded business, and acquired a dominant\nposition. <\/p>\n\n\n\n<p><strong>For instance:<\/strong> Lipton India and Brooke Bond, and Patanjali and Unilever.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Vertical_Merger\"><\/span>Vertical Merger<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Whenever two or more companies who are engaged in\nsimilar nature of products but operating at different stages of production, the\nsame is known as Vertical Merger.<\/p>\n\n\n\n<p><strong>For instance:<\/strong> Reliance and FLAG Telecom Group.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Co-centric_Merger\"><\/span>Co-centric Merger<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The term co-centric merger denotes a type of merger\nin which the companies who are serving the same type of customers are involved.\nFurther, under this concept, the products of the parties involved, can either\ncomplement each other or can be different as well. <\/p>\n\n\n\n<p><strong>For instance:<\/strong> Flipkart acquiring Walmart India, Axis Bank acquiring Freecharge, Acquisition of Salomon Smith by Citi Group.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conglomerate_Merger\"><\/span>Conglomerate Merger<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Whenever two unrelated companies decide to associate\nor merge with each other, the same is termed as Conglomerate Mergers.<\/p>\n\n\n\n<p>Further, it shall be noted that the purpose and goal of both the companies must be entirely different from each other.<\/p>\n\n\n\n<p>Also, the main benefits of this merger are Increased\nBusiness Reach, Expanded Operations and Size, Gained Competitive Edge.<\/p>\n\n\n\n<p><strong>For instance:<\/strong> Voltas Ltd and L&amp;T<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Cash_Merger\"><\/span>Cash Merger<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Whenever the shareholders of a company offer cash\ninstead of shares of the merged company, the same is known as Cash Merger.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Forward_Merger\"><\/span>Forward Merger<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>If in case a company decides to merge with its\ncustomer, the same is termed as Forward Merger. For instance, Acquisition of\nBank of Mathura by ICICI Bank.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Reverse_Merger\"><\/span>Reverse Merger<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Whenever a business establishment chooses to merge\nor combine with its raw material suppliers, the same will be termed as Reverse\nMerger.<\/p>\n\n\n\n<p>For instance: Merger of Gujarat Godrej Innovative\nChemicals and Godrej Soap. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Detailed_Procedure_for_Mergers_and_Acquisitions\"><\/span>Detailed Procedure for Mergers and Acquisitions<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The steps involved in the procedure for Mergers and Acquisitions 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\/03\/Examine-the-MOA-1024x267.png\" alt=\"Procedure for Mergers and Acquisitions\" class=\"wp-image-2846\" width=\"703\" height=\"183\" srcset=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/03\/Examine-the-MOA-1024x267.png 1024w, https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/03\/Examine-the-MOA-300x78.png 300w, https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/03\/Examine-the-MOA-768x200.png 768w, https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/03\/Examine-the-MOA.png 1406w\" sizes=\"(max-width: 703px) 100vw, 703px\" \/><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Examine_the_MOA\"><\/span>Examine the MOA <span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>In the first step of the procedure for Mergers and\nAcquisitions, there is a need to examine the MOA (Memorandum of Association) of\nthe Company. The same is done to check whether the Object Clause allows the\ncompany with the power of merger or not.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Notify_the_Recognised_Stock_Exchange\"><\/span>Notify the Recognised Stock Exchange<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Now, in the next step, the parties involved in the\ndeal will need to inform the Recognised Stock Exchange (RSE) about the same. Also,\nthey need to send copies of the notices, orders, resolutions passed to the\nstock exchange within the period specified.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Drafting_of_the_Merger_Proposal\"><\/span>Drafting of the Merger Proposal<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>In this step, the Board of Directors (BOD) of the parties\ninvolved need to confirm the drafting of the merger proposal. Also, they need\nto pass a special resolution to authorise Key Managerial Personnel to carry out\nthe matter.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Furnish_Application_with_High_Court\"><\/span>Furnish Application with High Court<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>When the Board of Directors have confirmed the\nprocedure of Mergers and Acquisitions, the companies involved need to file an application\nwith the High Court of said state, where the company has its registered office\nlocated. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Dispatch_Notice_to_Shareholders\"><\/span>Dispatch Notice to Shareholders<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Further, if the application filed is approved by the\nHigh Court, then the companies involved need to send a notice of meeting to the\nstakeholders, i.e., Creditors and Shareholder.<\/p>\n\n\n\n<p>Also, the notice must be sent at least 21 days prior\nto the date of the meeting. The said notice needs to be published in two\nnewspapers as well, i.e., in Vernacular and English Newspaper.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"File_Order_to_ROC\"><\/span>File Order to ROC<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Now, the company requires to file the certified copy\nof the High Court\u2019s order with the Registrar of Companies within the period\nspecified.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Merging_of_Assets_and_Liabilities\"><\/span>Merging of Assets and Liabilities <span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>After that, to complete the process of merger and\nacquisitions, the companies involved need to combine or merge their assets and\nliabilities based on the stipulations specified in the merger proposal.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Listing_of_Shares\"><\/span>Listing of Shares<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>In the last step, the company newly formed will have\nthe status of a separate legal entity and will be eligible to list the shares\non RSE (Recognised Stock Exchange).<\/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, the term mergers mean the alliance of\ncompanies, in which two companies decide to form a new company. In contrast, the\nacquisition means a process in which the acquirer company acquires another company\nthrough a legal document.<\/p>\n\n\n\n<p>However, to undergo the procedure for Mergers and Acquisitions and to avail of its benefits, one needs to comply with the requirements stated in the blog above.<\/p>\n\n\n\n<p><strong>Also, Read:<\/strong> <mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/blog\/difference-between-mergers-and-acquisitions\/\">Difference between Mergers and Acquisitions in India<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Nowadays, every company wish to reach greater heights and want to expand its business operations. As a result, they tend to undergo the procedure for Mergers and Acquisitions. However, the term Mergers and Acquisitions are often considered as one, but the same are two different concepts, the former is carried out to increase goodwill, business [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":2844,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[68,64],"tags":[443],"acf":[],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/2843"}],"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=2843"}],"version-history":[{"count":3,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/2843\/revisions"}],"predecessor-version":[{"id":2849,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/2843\/revisions\/2849"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media\/2844"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media?parent=2843"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/categories?post=2843"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/tags?post=2843"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}