Merger Agreement

 
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Merger agreement is a contract that comprehensively lists down all details governing the merger of one or more companies. It is a main document that is legally binding on all the parties to the contract. To make it enforceable, the agreement has to be approved by and duly signed by the authorized parties. It can be cancelled under circumstances where any party fails to comply with the laid down terms and conditions.

The agreement should take into account all possibilities and lay down the plan of action for the same. The legal terminology should be correctly and carefully used. Moreover, any spelling mistake in the names can nullify the contract.

A number of formats are easily available for drafting a merger agreement. But due to the level of complexity and accountability involved, they are normally drafted by law firms for their clients.

Some of the important components of the agreement are:

  • Agreement date - It is the date on which the agreement became enforceable.
  • Names of the merging parties - Complete names of all the companies merging their business.
  • Type of industry - It refers to the industry in which the merger is taking place. For instance, merger of two drug-making companies belong to the industry Biotechnology & Drugs.
  • Type of sector - In the above example, the sector is Healthcare.
  • Jurisdiction - It is important to identify the laws governing the jurisdiction
  • Other important details like members of the management, valuation of shares, liability of the members, valuation of tangible assets, etc.
 
 

Contact Mr Ajay Gehi

Call : +91-9987037761 / Email : gehiajay@gmail.com
 
 
 
 
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