Phases of a Business Merger 

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Categoría: Step by Step

To describe step by step the Phases concerning a Merger between Commercial Companies, it is first necessary to define what a Merger is as a start:

Merger is understood as a legal operation carried out between two or more companies that is aimed at the extinction of all or some of them and the integration of their respective partners and assets in a resulting company, which may be newly created or one of the companies that merge. 

Based on Law 3/2009 of April 3, Chapter I, Section 1 updated in 2014, on structural modifications of Commercial Companies in Spain, the procedure for this operation consists of three Phases, represented graphically in the Infographic of this article and which are described below: 

1. Preparatory phase. The documents of the Merger Project and the Merger Balance must be verified by Report of Directors and independent experts and of a certain publicity, by means of their deposit in the Mercantile Registry.

2. Decision phase. The General Meetings of the companies participating in the merger must decide on the approval of the respective Merger Agreement.

3. Execution phase. Once the agreement has been reached, it will be made public to enable the exercise of the so-called "Creditors' Right of Opposition". After a certain period has elapsed, the Merger Deed will be granted and subsequent registration in the Mercantile Registry, making the pertinent publicity in the Official Gazette of the Mercantile Registry. 

Besides, an identity of form is not required in the company resulting from the Merger: it can be Anonymous, Limited Liability, etc. 

In this way, it is possible to observe the importance and the need to have Comprehensive Professional Advice that supports and guides the partners/owners of the companies in all the Merger Phases so that the process and the entire operation are successful.

At Segovia Consulting we provide this Advisory Service with a solid and clear strategy. You can find out in our link on M&A. 

If you want to send us a message, you just have to enter here and explain your situation so that we can start working on it. 

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