In order to cut costs and increase profits and boosting shareholders' values, when two companies agree to go forward as a single new company rather than remain separately owned and operated, merger takes place.
In order to generate cost efficiency through economies of scale, achieve greater market share, greater efficiency, and increased tax efficiency, one company takes over another and clearly established itself as the new owner; the purchase is called an acquisition or take over.
In order to extend marketing reach, access needed information and resources, build credibility with a particular target market, and access new markets that would be inaccessible without the strategic partner, two companies may agree to get into a strategic alliance pooling together their goods, services and/or capital to a common commercial enterprise. Such alliance is a joint venture. It can be a corporate or a contractual joint venture.
With Reserve Bank of India (RBI) approval and Department of Industrial Development (DID), a business arrangement with financial collaboration (foreign equity participation- where foreign equity alone is involved) and/or technical collaboration (technology transfer involving licensing of technology by the foreign collaborator on due compensation) can be preferred by Indian business entrepreneurs/ business and industrial houses.
Drafting of agreements relating to mergers and acquisitions (M&A).
Drafting of joint venture (JV), and foreign collaboration (FC) agreements.
Advise the clients about M&A, JV, and FC agreements/ arrangements.