"There are certain practicalities which should be kept in mind while entering into a cross border merger." Briefly comment.

CS Professional · Corporate Restructuring, Insolvency, Liquidation & Winding-up · PYQS · December 2020
"There are certain practicalities which should be kept in mind while entering into a cross border merger." Briefly comment.

Answer & Explanation:

Cross-border mergers do have practical difficulties hence certain practicalities need to be kept in mind. They are as under: Companies involved in the cross-border merger shall ensure that Regulatory actions, if any, prior to the merger with respect to non-compliance, contravention, violation as the case may be of any Act, Rules and Regulation made thereunder, are addressed. Due diligence on the target firm, risk-benefit analysis and valuation of both sides to assess the compatibility. Ensure that the other company is within the prescribed jurisdiction mostly in case of an outbound merger and also get familiarized with the regulatory and political landscape of the other company across the border.

Topics: Corporate Restructuring

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