Merger of Companies by Absorption or Incorporation

Merger of companies by absorption. Sometimes, the Partners or Shareholders of a Company require a corporate strategy that promotes the fulfillment of their objectives, as well as to strengthen their commercial relationships, to expand their current businesses or, if applicable, to enter future businesses, for what, a recommended initiative is to merge with another Company that has sufficient assets and that meets certain characteristics for its future operation.

The Merger involves at least two or more Companies that decide to unite their assets and their capital. When we speak of Merger by Absorption, also known as Incorporation, we refer to the fact that one of the Companies disappears, integrating its assets into the Company that will continue to exist, so that it can operate with greater resources; as a consequence of the above, it will be a more competitive Society with a greater impact at the national and even international level.

It is important that the Merger process is carried out with expert lawyers in the matter, in order to avoid that the Company you acquire to operate with more force, does not have hidden situations that, instead of benefiting, permanently harm your Society.

In this sense, the Corporate Area of ​​Bandala, Díaz, García joins forces with the Accounting Area, who are in charge of reviewing the information and documentation that you provide of the Company you wish to merge, in order to provide you with the security you need to promote your business, as well as to avoid risks or controversies that may affect the Company that remains.

In later articles we will talk about the Merger by Integration, as well as its legal effects.

At Bandala, Díaz, García we offer you the advice you need for your projects, do not hesitate to come to us, you can call or email us!