Acquiring and merging companies in the Emirates is a way to develop those companies in the labor market. Through merger services between companies, their position among competitors increases their chances of dominating the market, and also increases profits and financial liquidity. Saar Law Firm is considered one of the largest offices in Dubai and the Emirates that provides legal services and consultations to commercial companies to raise the level of their performance, increase their production, and thus increase their financial return. Mergers and acquisitions are two completely different processes, but they are always combined in one term because they provide the same benefit. They achieve a common goal for companies and institutions. Contact SAR lawyers for more details about both currencies and how our advisors can help you make a decision regarding your company’s deals.
What is the merging process? It is the process of merging two corporate entities to become one company with a common name and identity with the aim of increasing the profits of both companies. The merger takes place through a legal agreement and a binding contract between the two parties to implement the terms and conditions of the merger. There are many types of company mergers, including horizontal, vertical, and diversified, and each of these achieves different economic achievements. Acquisitions and mergers of companies in the Emirates are among the most common activities that the country has witnessed in recent years, as the Emirates is the Gulf country that conducts these deals the most. Here are some of the company merger services that we excellently provide:
Well-thought-out legal advice on merger and acquisition decisions
Providing unique solutions for complex deals.
Develop special strategies and evaluate the investment and target assets
Negotiations and persuasion mechanisms for the best suitable agreement for our client.
Corporate debt restructuring services.
Carefully review all details and papers before completing either process.
Legal drafting services for contracts required during the completion of the two processes.
Horizontal merge
It takes place between companies that offer similar products and share the same industry, and the goal of the horizontal process is to target a larger share of the market and consumer segment, and thus increase profit.
Vertical merge
It is a merger between two companies in the same industry and targeting the same market, but the merger takes place in certain stages of production and preparation of services. The goal of this type is to save production costs for both companies, as they work to share one production line instead of two to save payments.
Diverse inclusion
It is the merger of two companies with different industries and different economic activities. This type of merger aims to diversify the companies’ activities and sources of income. Diversified merger also helps to increase the customer segment.
Types of acquisitions
Acquisitions and mergers of companies in the UAE take many forms. Acquisition, unlike merger, removes the identity of one of the two companies instead of uniting them, and acquisition occurs in two ways, friendly and unfriendly. The company buys the majority or all of the shares from another company, takes over its financial and administrative activities, and dominates the board of directors. If this is done with the approval of the company to be acquired, it is a friendly takeover, but if it is done without its knowledge, it is unfriendly. In both cases, a lawyer must be sought to bring the procedures within the legal context.
