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Business Merger & Acquisition Services in UAE

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Business Merger & Acquisition Services in UAE 

Acquisitions and mergers are complex areas for companies, as you will enter into a new market. For this major decision, the finance and management department develops plans, strategies, and feasibility studies. Transactional business structures have two possible outcomes, either they add value to your business or they lead to losses. Therefore, entities seek expert guidance if they are planning to combine or form a new company. For a secure joint venture, merger & acquisition you need to hire a team of professional chartered accountants in the United Arab Emirates. Let’s understand the essentials before bringing your organization into a new structure. 

Difference Between Merger & Acquisition

Mergers refer to uniting two or more organizations under one trade name. This consolidation makes an entirely new joint company, which reduces the market competition and trade barriers. The main reason for the merger is to combine the strengths and weaknesses of entities to form a solid one. There are different types of corporate mergers, such as 

  • Horizontal Merger
  • Vertical Merger
  • Congeneric Merger
  • Market Extension Merger
  • Reverse Merger
  • Conglomerate Merger
  • Product Extension Merger

Acquisition is the process of taking over a business by another entity. It can be conducted by acquiring 51% of the capital share of the company. While there is no new organization a formatted and influential entity is more powerful than the target company. The acquisition adds value to shareholders and expands a company’s reach. Some types of acquisition are mentioned below:

  • Friendly Acquisition
  • Hostile Acquisition
  • Buyout Acquisition 

Why Do Corporates Involve Mergers & Acquisitions?

The combination of businesses takes place due to different strategic decisions, but generating more profit is the core objective. The organizations involved in mergers and acquisition when tends to 

  • Restructure financial & management operations
  • Cutting operational and utility expenses
  • Enhance overall business performance
  • Saves on the marginal cost of the supplier
  • Avail opportunity for revenue synergy
  • Decrease the capital risks of the business 

UAE Legal Requirements for Combining Businesses 

The Federal Law No. 2 of 2015 on Commercial Companies law & Federal Law No. 4 of 2012 on Regulation of Competition is governed in UAE for M&A transactions. The statutory guidelines set out limitations on share transfers for involved entities, foreign ownership, and other merger regimes. The companies operating in the UAE free zones and the mainland have a separate legal framework for mergers and acquisitions. The relevant authorities are the regulatory bodies where the companies will apply for corporate M&A requests.

Regulatory Authorities for M&A Activities

  1. Securities & Commodities Authority for listed entities
  2. Competition Regulation Committee of the UAE Ministry of Economy
  3. UAE Central Bank for banks and licensed financial companies
  4. Department of Economic Development in each of the Emirates

Documents Required to Implement M&A

These supporting documents are the primary requirement of the UAE regulatory authorities as follows:

  1. Offer letter
  2. Shareholder agreements
  3. Sale and purchase agreement
  4. Share transfer form in Arabic or English
  5. Letter of intent/heads of terms agreement
  6. Agreements for transfer of specific assets (if an asset sales)
  7. Disclosure letter along with the bundle of disclosed documents
  8. Corporate authorizations with board members, shareholders & power of attorney resolutions
  9. Ancillary documents (transitional services agreement, key employee agreements, intellectual property licenses, and other material documents) 

What should be Considered during Corporate Mergers & acquisitions?

Small and medium-sized businesses must consider some essential points for strategic conglomerations. The management and financial officers must analyze each and every aspect of the influential company as well as the target entity. They should decide which legal form of business they need, tax treatment after the transaction, management integration, and many other factors. It is often a challenging task for the in-house team, so they can outsource the expert business Advisory services in UAE. The professional accomplish your mergers and acquisition activities and considers several important factors. 

What Includes in Our Merger & Acquisition Service?

Our certified legal and business advisors are ready to serve you the exclusive merger and acquisition services to individuals and businesses. We cover these areas while offering our M&A service:

  • Assist in the legal structuring of an organization
  • Proper planning & implementation of synergies
  • Tax Compliance consultation
  • Prepare documents for transaction integration
  • Post-merger & acquisition support
  • Design Portfolio strategy
  • Suggestions for maximizing shareholder value

Why Choose BesatxCA?

The Bestax Chartered Accountants and business advisors are offering client-centric services in the UAE. With over 10 years of experience, our team helps companies with financial accounting, auditing, tax compliance, and many other services. Our vast knowledge of a wide array of industries saves clients from penalties and other legal pitfalls. Our strategist offers Mergers and Acquisitions services to optimize operational, management and financial transactions. We advise individuals and businesses on how they add value by minimizing risks. With BestaxCA you get tailor-made solutions for all your M&A transactions. Our professionals have efficient merger and acquisition capabilities. 

BestaxCA always assures logical suggestions, expert negotiation, and successful completion of every project handled. We take care of all the legal requirements during the M&A process and assist you in following up with authorities. 

Get in touch with the team of BestaxCA and consult us for the strategic mergers and acquisition service on a global scale.

Email: info@bestaxca.com

Call: +971 56 7981808

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