Deal Structuring and Agreements in Mergers Defining Corporate Environment
Abstract
The business being acquired usually merges with another company to create a single legal entity. Stock holders of the target company will get stock, cash, or a mix of both. In the vast majority of mergers, permission of just a majority of the shareholders is sufficient (although certain merger agreements may also need further shareholder approval). In this article, we shall discuss some of those provisions and further an integral part of Mergers which though has not been statutorily defined but yet exists in every big and small decision of companies which is Due Diligence. Due diligence has been a critical part of work culture ever since mergers are in vogue as it helps examine the situation of the target company and its work environment and so its prospect of growth. This may additionally permit the incorporated firm to achieve gains because of the absence of duplication of expenditures on analysis and development, redundant production and various other harmful factors to growth with the exception of helping the affected firm to become additional economical, a merger or acquisition transaction may promote trade rationalisation, to the advantage of the economy as a full.
How to cite this article: Moitra M. Deal Structuring and Agreements in Mergers Defining Corporate Environment. J Adv Res Polit Sci Gov 2022; 6(1): 1-5.
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