M&A processes - what is it

Successful business involves flexibility in operating with assets, orientation in the economic situation, timely response to market changes. One way to optimize your existing business is to merge.

In the process of performing professional activities, such a moment comes when the goals set are fulfilled. What to do when there is a need to move to a new level of income, but there is no desire to reprofile the business? The merger procedure is one way to modernize a business.

Reorganization in the form of a merger will become an effective method in case of unprofitability of the enterprise as an alternative way of liquidation.

Reorganization as an alternative to liquidation

During the reorganization of the enterprise, the question of succession of the newly created legal entity is put at the forefront.

The legislation provides for several scenarios of enterprise transformation, during which the liquidation of one and the creation of another legal entity takes place.

One of the forms of transformation with the termination of previous legal entities and the formation of a new legal entity is a merger. The newly formed legal entity is the legal successor and bears the burden of liability for the debts of the liquidated legal entities. persons.

Reorganization in the form of a merger is also used to strengthen, expand the sphere of influence and optimize the production and management processes of a completely successful enterprise.