Entrepreneurs face issues where the shareholders of a particular company have to vote for a new chairman or when acquiring legal ownership. The situation is also different when two companies will have to merge because of various corporate reasons. You could be a local or foreign capitalist in Germany, but such a profession doesn’t always imply your knowledge of the law.

This is why we have merger and acquisition laws to follow which your company lawyer must be familiar with. Now, if you need legal pieces of advice regarding M&A, then you should seek consultation from reliable firms – click https://www.corestonelegal.de/ for this type of service. Their lawyers will be very helpful, especially when you don’t have corporate attorneys who specialize in M&A.

In the business industry, Mergers and Acquisitions pertain to the consolidation of assets from different institutions. This doesn’t only refer to the brand of the company, but also its finances, so the board member with the highest share will manage it. For example, you can buy enterprise A even when you own B to become one and the whole process must be guided by a lawyer.


This refers to a situation where your company would be taking over another one and instituting it to be a new owner.  Sometimes, the takeover could be aggressive, especially when your target is against the procedure. Therefore, for this to be successful, you have to propose a guaranteed deal – asset or shared, through the aid of your attorney.

When you say asset deal, you’ll have to hand over distinct chattels, so the seller decides on what the buyer may purchase. If there are liabilities, then these must be declared as well. This transaction can be valid through a written contract signed and agreed upon by both parties.

For share deals, the shareholder’s only focus is to get a partial or full transfer of his investment. This is a common practice in the country because it requires fewer documents. Here, the business operations will continue and as agreed, the investor will be acquiring his assets and liabilities, as well as rights – read https://archive.mbda.gov/news/blog/2012/04/benefits-merger-or-acquisition.html# for additional information.


For this, the primary governing basis would be the “Umwandlungsgesetz or UmwG”, which is the German Transformation Act. This will consent a firm to being restructured after an accomplished unification of two establishments. Of course, this will materialize through subsequent definite procedures.

First, you have to make a draft with the presence of your attorney. Next, the owners should be able to submit a detailed report regarding the reorganization that will take place. The purposes for this reformation must be defined and implemented.

Through the report, you have to notify the German Commercial Register regarding this agreement, thus, legal support is necessary. After a successful unification, annual reports and taxes will be checked for confirmation. If there are issues, then you’ll have to work on these for smoother business operations.

Consolidations and Tender Offers

When consolidating, you’re going to create a new organization with the authorization of shareholders from both establishments. Therefore, you have to combine the main businesses and cast aside the old corporation. Indeed, it would be a different management, but stockholders will still be receiving their equity shares.

With a tender offer, you may propose to buy the remaining stocks of your target firm. However, you won’t be following the market value since you’ll set a specific amount. This transaction is usually an agreement made directly to the stockholders.

Management and Asset Acquisitions

In Management-led Buyout or MBO, we have executives who will buy shares to have major control of the company’s operations and finances. They gather all resources to help the firm and improve profit. It’s possible through the support of various financiers – check this out to continue reading.

Acquiring chattels of another corporation could be directly accomplished. However, your target institution must gain consent from the shareholders. This circumstance often occurs when the bankruptcy was announced, so you may have competitors and the highest bidder wins.

Why do you acquire other organizations?

In this industry, we’re attentive to the tough competition that’s why we invest in various marketing strategies. Unfortunately, some establishments fail, thus, declaring bankruptcy. This is what capitalists are waiting for because it’s a chance to acquire assets and stocks.

Sometimes, entrepreneurs plan to obtain what their competitors own. In this way, there won’t be a threat to them. Indeed, it’s a wise idea because consumers from their contenders may have to switch brands.

It’s also an advantage to the purchasers because this approach will lead to increased sales. When this happens, you’ll have better chances of expanding your services locally and globally.

How M&A Affects Shareholders

In an organization, stockholders are usually divided, so it’s like having different sides. Some of them may be targeting to buy stocks from other executives or board members. Through this, they can have more shares which means that they are later on legible for higher positions, which is a common goal.

There might be divisions due to personal interests, they could still be unified when it comes to corporal decision makings. When there are project proposals, they’re all permitted to raise their ideas and reject them when foreseen as a failure.

Be reminded that in every corporation, power is always meant by your shares. Sometimes, your capability to manage the organization is even neglected because hiring professional managers are allowed. Well, that’s what money and power can do when you’re in the commercial industry.

How to Find Corporate Lawyers

Your initial step is to ask for recommendations. It would be ideal to seek help from your friends. They might know someone who worked with them in the past.

Next, go online and search for law firms near you. Just make sure that they are licensed and experienced as well. You should also check their specialty to avoid wasting time.

Go over the list of registered attorneys in the area. Compare their ratings and reputation. Lastly, read the feedback from previous clients.