Mergers and acquisitions
A merger refers to a legal agreement between two companies to combine their resources to work as one entity. A merger can also be defined as a process where two distinct entities combine efforts to create a new and joint organization while acquisition is the process where one entity absorbs another entity to form one business. Mergers and acquisitions may increase the value of shareholders through market expansion and an increase in shares.
Mergers and acquisitions are important corporate strategy measures since they help in the external growth of the business and also offer a competitive advantage. Even though mergers and acquisitions are used interchangeably they come with different legal considerations.
When companies opt to merge or absorb another company the two should know the pros and cons of merging. The merging companies should be aware of the legal aspect involved in the entire process and understand the process of unifying or consolidating two different companies through the various financial transactions.
For a successful merger, an individual should familiarise themselves with the targeted market, understand the market dynamics, both external and internal factors that may influence business operation and nature of the merging entities. Globalization has led to multijurisdictional coordination.
Kafui & Partners help the merging companies to understand the aspect of legislative requirements and commercial issues irrespective of the countries required. We offer services to companies in the following ways;
Help the company to draft required documents for formalization and execution of the transactions.
Assist the mergers to identify legal issues arising as a result of the merger.
We also design suitable and affordable structures for the transaction.
Help in the review of contracts that could be affected by the merger.
Advise mergers on jurisdiction choice.
Kafui & Partners work closely with another expert in the team in different areas of interest and specialization such as tax consultancy, financial and accounting advice that are vital to mergers. Kafui and mergers are qualified to assist in the national and cross-border mergers in various industries in West Africa French-speaking countries.
We are also entrusted to advise on stages of the transaction, from negotiation to implementation. Our advice is based on suitable structures as well as drafting relevant agreements and ancillary documents.