Mergers and Acquisitions Lawyers in Hyderabad, Corporate Law firm
Mergers and Acquisitions Lawyers in Hyderabad, Corporate Law firm
Share Acquisitions
In share acquisitions, a buyer acquires a target company's stock.
Strategic share acquisitions can be classified into two broad categories: (i) the acquirer purchases a majority stake and
the sellers continue to hold a minority stake; and (ii) the acquirer purchases the entire stake from the existing
shareholders.
The rationale behind leaving the sellers with a minority stake is three-fold: (i) to ensure that they have some skin in the
game; (ii) to ensure their full cooperation in the transition period; and (iii) to enable structuring of the remaining pay-out,
which could be linked to an earn-out model.
Our Founder is highly experienced in hand-holding client teams for both acquirers and sellers. Industry experience
suggests that buy-side mandates involve more work as they involve understanding the target company threadbare. Our
Founder’s experience, however, has been that the sell-side mandate is more complicated, as it also involves coaching the
client in navigating their own emotions which may get triggered at the time of sale of their company. We would love to
give you the benefit of our experience.
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How can the buyer and seller ensure that they are getting what the company’s true value is at the time of
actual transfer and not the outdated value which they agreed upon a few months back?
What does the acquirer watch out for when the target company is listed?
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