Over the last decade, mergers and acquisitions have become central to driving growth of many companies in India. Apart from being a growth choice, M&A has allowed companies to achieve a variety of objectives such as entry into newer markets, vehicle for capital investments, shielding competition, acquiring intellectual property and reducing tax liabilities. With different reasons for transactions, the traditional corporate, regulatory and tax laws are undergoing several changes requiring thorough and multi-disciplinary advice. M&A practice of L&S is the core of the firm’s corporate practice and is distinguished by experienced team and industry wide knowledge.
Choice of Transactions
M&A transactions can vary from friendly acquisitions, stock and asset acquisitions in public and private entities, joint ventures to recapitalizations, divestures, spin-offs and carve-outs, and also hostile takeovers, leveraged buyouts and bailout buyouts. The L&S team has a track record of successfully handling all such transactions.
Structuring M&A transactions is critical to the success of the exercise. The choice of investment, jurisdiction and special purpose vehicle all play significant roles. The tax and regulatory regime in India is complex and ever-changing. Tax on capital gains, double taxation avoidance agreements, tax treatment of royalties, foreign exchange regulations, RBI requirements and industry specific regulations all have significant impacts. M&A team in L&S plan and implement creative deal structures for acquisition of targets in India and abroad.
The firm is known for its expertise in the areas of tax, intellectual property, competition/antitrust, regulatory laws and litigation. In complex transactions, experienced teams in general corporate laws and compliance, real estate, employment, banking, tax, intellectual property and regulatory laws provide quick and practical support and advice to ensure that the transactions are efficient and viable.