M&A activities enhance business growth but involve complex legal, financial, and regulatory considerations.
Companies Act, 2013 – merger approvals and procedures
SEBI Regulations – for listed companies
Competition Act, 2002 – anti-competition compliance
Due diligence of assets and liabilities
Shareholder and board approvals
Compliance with labor and tax laws
Drafting clear agreements to prevent disputes
Reduces risk of litigation
Ensures smooth transfer of assets
Protects shareholders and stakeholders
“A well-structured M&A deal ensures legal compliance and sustainable business growth.”
Q1. Is board approval necessary for mergers?
A: Yes, under Companies Act, 2013.
Q2. What is the role of Competition Commission?
A: To prevent anti-competitive practices during M&A.
Q3. Can minority shareholders oppose M&A?
A: Yes, through legal remedies under Companies Act provisions.
Q4. What is due diligence in M&A?
A: Detailed review of financial, legal, and operational aspects.
Q5. How long does M&A approval take?
A: Depends on complexity; can range from months to over a year.