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Businesses these days undergo various structural modifications to sustain their existence in the market. One of the preferable strategy used by companies to expand their market base include Takeover of Company. Scroll these slides to check some of the essential aspects of Company takeover.
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Know the Process of Company Takeover
What is Company Takeover? Takeover takes place when a company makes bid to take control of or seeks to acquire another by purchasing the majority stake in the target company. The company that makes the bid is known as acquirer, and the company that seeks to take ownership of it is known as the target company.
What is the need for Company Takeover? Increases the size of the business; 01 Reduces market competition; 02 Provides various tax benefits; 03 Helps in achieving product development, market improvement of the target company; 04 Accountability 05
Laws Section 230 (11) of Companies Act 2013 Governing Section 250 (3) of Companies Act 2013 Takeover of Section 261 of the Companies Act 2013 Company SEBI (Substantial Acquisition of Shares & Takeover) Regulations 2011
01 Reverse Takeover Types of Company Takeover 02 Bail out Takeover 03 Friendly takeover 04 Hostile Takeover 05 Backflip Takeover
1 Pass the board resolution File Application to the Commission 2 Procedure of Company Takeover Registration of the proposed takeover 3 4 Takeover Bid 5 Convene Board Meeting 6 File Takeover Report
Planning Firstly the acquirer company should analyze the industry by conducting a review of the objective of the acquisition in context of the SWOT. Checklist Candidates Screening The company should search and shortlist suitable candidates for takeover. Financial Evaluation Cash flows; Maximum price payable for takeover; Method of financing the takeover.
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