Between outbound merger and inbound merger, which one appears more beneficial to Corporate India ?
CS Professional · Corporate Restructuring, Insolvency, Liquidation & Winding-up · PYQS · December 2020
Between outbound merger and inbound merger, which one appears more beneficial to Corporate India ?
Answer & Explanation:
'Outbound Merger' is one where an Indian company has merged with a foreign company. Accordingly, all properties, assets, liabilities and employees of the Indian company will be transferred to the foreign company. In an outbound merger or acquisition, a domestic company purchases or merges with one in another country. On the other hand "Inbound Merger" refers to merging a foreign entity with a domestic company such as Tata's acquiring Corus and Jaguar. Inbound merger scores over outbound merger for the reasons of: Inflow of foreign direct investment. Technology transfer. Widening the national market to international level. Improved operational standards. Improving human relations at a global level. Elevation of prestige globally. Therefore, Inbound Merger appears more beneficial to Corporate India.
Topics: Corporate Restructuring
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