A merger is the combination of two companies into a single new legal entity through the exchange of shares or ownership interests. The companies involved are not required to have the same activity or legal structure.
An acquisition is the purchase by one company of the shares or ownership interests of another company in exchange for a financial consideration, without establishing a new legal entity. It may be a full acquisition (100%) or a partial acquisition (usually a controlling stake, often 51% or more).
Strategic importance
Companies pursue mergers and acquisitions to achieve several objectives, including:
Improving operational efficiency
Expanding market share
Diversifying business activities
Enhancing competitive capability
Mergers & Acquisitions (M&A) Department
The Mergers & Acquisitions (M&A) department at Al-Radwan Law Firm provides comprehensive legal support to companies and investors seeking to execute acquisition or merger transactions. This is done through analyzing the legal and commercial aspects of the deal and protecting clients’ interests in accordance with applicable laws and regulations.
Core objective of the department
The primary goal is to:
Create a secure legal environment for successful M&A transactions, minimize risks, and ensure the protection of investors’ and companies’ rights throughout all stages of the deal.
Typical services provided in M&A transactions include:
Conducting Legal Due Diligence to assess the legal status of target companies and identify potential risks and liabilities
Drafting and/or negotiating transaction documents (such as share purchase agreements, shareholders’ agreements, escrow agreements, and other ancillary documents)
Supervising the execution of transaction procedures before relevant authorities and completing all corporate steps required for successful closing
The department also provides:
Advisory services on investment structures and selecting the most appropriate legal form for transactions
Negotiation and representation of clients with counterparties to achieve optimal contractual terms
Completion of legal procedures, licenses, and regulatory approvals with competent authorities
Handling matters related to company law, investment law, and commercial disputes
Expertise
Al-Radwan Law Firm relies on its experience in corporate and investment law, contract drafting, negotiation, and commercial arbitration to deliver practical legal solutions that help businesses achieve growth and expansion while ensuring legal security.