Mergers and acquisitions (M&A) are transactions in which the ownership of companies, other business organizations or their operating units are transferred or combined. As an aspect of strategic management, M&A can allow enterprises to grow, shrink, change the nature of their business or improve their competitive position.
From a legal point of view, a merger is a legal consolidation of two entities into one entity, whereas an acquisition occurs when one entity takes ownership of another entity’s stock, equity interests, or assets. From a commercial and economic point of view, both types of transactions generally result in the consolidation of assets and liabilities under one entity, and the distinction between a “merger” and an “acquisition” is less clear. A transaction legally structured as a merger may have the effect of placing one party’s business under the indirect ownership of the other party’s shareholders, while a transaction legally structured as an acquisition may give each party’s shareholders partial ownership and control of the combined enterprise. A deal may be euphemistically called a “merger of equals” if both CEOs agree that joining together is in the best interest of both of their companies, while when the deal is unfriendly (that is, when the management of the target company opposes the deal) it may be regarded as an “acquisition”.
Decision-making related to Merger & Acquisition can have an enormously influence on the existence and development of both parties involved. In addition, Vietnamese legal procedures for mergers and acquisitions are complicated. In case you have no experience in mergers and acquisitions and are not familiar with related legal procedures, contactin us is the best solution. We have a team of specialized consultants who are always ready to explain every aspect related to mergers and acquisitions. Besides, we will represent you to complete legal procedures. All you need to do is just provide the required documents.