Mergers, Acquisitions, Divisions, Transformations

Increasingly often entrepreneurs have to decide if they want to change the legal form of their business, diversify their current operations or consolidate them. They are faced with such dilemmas either because their companies are growing or because they are interested in moving into a different jurisdiction. Business owners may also want to embrace benefits offered by different business vehicles laid down in the Commercial Companies and Partnerships Code. Last but not least, they may be looking for the most convenient mode of taxation of the profit distributed among members. In some instances businesses opt for transformation as the most neutral path towards a change of their legal form. What is of significance here is the going concern principle which applies to transformation. Under this principle the only element subject to the change is the legal form of a business, not the business itself. Owing to this, transformation very rarely requires amending agreements with business partners or employees. It is also hardly ever necessary to reapply for concessions, licences or other permits. Banks, co-financing institutions, commercial insurance providers and many other similar entities – whose response to any organisational change is important for entrepreneurs – present a favourable attitude towards any business transformation.

Our lawyers have completed hundreds of mergers, acquisitions, divisions and transformations, all of which have been preceded by thorough consideration of every detail, and carried out with minimal inconvenience to the day-to-day running of the business. Our priority is to adapt our clients’ enterprises to evolving legal and economic conditions and, at the same time, provide them with an unhindered opportunity to continue their business operations.