Merging a company is the process of two separate companies becoming into one new company, acquisition occurs when one company buys out another company or through an agreement, one company becomes part of another company.
Merging two companies is a complicated process. It involves the purchase of shares, transfer of shares, purchase of assets, management acquisitions and a change of company or share structure. In addition, employment contracts with existing employees and any intellectual property such as trademarks will also be transferred. It is extremely important that the transfer of each right is completed successfully to prevent a delay which may impact upon the ability of the company to oblige with any other contractual obligation.
During the process of a merger or acquisition, any insider knowledge such as share price or the details of the transaction must not be leaked to ensure the transaction is completed successfully. AGC Lawyers can assist you in all mergers or acquisitions, providing accurate legal advice in a time efficient manner.