Between Inbound merger and Outbound merger, which one appears more beneficial to corporate India? Give reasons in support of your answer.

CS Professional · Corporate Restructuring, Insolvency, Liquidation & Winding-up · PYQS · June 2023
Between Inbound merger and Outbound merger, which one appears more beneficial to corporate India? Give reasons in support of your answer.

Answer & Explanation:

An Inbound merger is one where a foreign company merges with an Indian company resulting in an Indian company being formed. An outbound merger is one where an Indian company merges with a foreign company resulting in a foreign company being formed. Accordingly, all properties, assets liabilities and employees of the Indian company will be transferred to the foreign company. Inbound merger score over outbound merger for the following reasons: inflow of foreign direct investment, technology, widening the national market to international level, improving operational standards and human relations at global level apart from the elevation of brand globally.

Topics: Mergers and Amalgamations

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