Mergers and Acquisitions | Sahel Law Firm | Legal solutions for today's world

Investors in the investment market may need to engage in mergers and acquisitions due to their significant importance, especially for startups. These strategies serve as an ideal option for executing a company's external expansion strategy, regardless of the type of company.

The global business environment today is characterized by various expansion strategies, alliances, and liquidation processes, requiring adherence to a wide range of legal, tax, and regulatory issues, among other factors that may influence the success or failure of a commercial deal. Among these strategies is the merger and acquisition process.

Below is a detailed explanation of the concept of mergers and acquisitions, their importance in company growth, and how you can obtain the best legal services in this field to meet your requirements and achieve your investment goals.

A Simple Explanation of the Merger and Acquisition System

A merger refers to the process of combining one company with another in exchange for the exchange of shares or stocks between the two companies, resulting in the establishment of a new company. On the other hand, acquisition involves one company purchasing shares or stocks of another company for monetary compensation, and no new company is formed. Additionally, mergers don't necessarily require the merging companies to have the same business activity; they can be between companies with different purposes or legal entities.

The Difference Between a Merger and an Acquisition

As mentioned earlier, a merger typically aims to reduce operating costs, expand into new markets, and increase revenues and profits. This is done through mutual agreement between two or more companies of similar size and scope to form a new company. Meanwhile, an acquisition is the purchase of a company by another, either through agreement or coercion, without forming a new company. The minimum number of companies involved in a merger is three, while in an acquisition, it is only two. Additionally, the legal procedures for completing a merger are more complex than those for an acquisition.

Regardless of the type of transaction you wish to undertake between your company and other companies, and depending on their nature, size, and objectives, we at Sahal Law Firm are here to assist you in completing all necessary legal procedures smoothly and efficiently to help you achieve your investment goals.

The Importance of Mergers and Acquisitions in the Saudi Market

The importance of mergers and acquisitions for companies is outlined as follows:

Increasing productivity and improving the quality of products and services offered to customers.
Doubling revenues and reducing costs for the company.
Diversifying the company’s business by introducing new products or services.
Allowing startup companies to enter the investment market and compete with larger companies.
Helping startups obtain appropriate financing, thus developing their services and increasing growth.
Enabling external expansion for companies of all types.
Reducing the risk levels related to the company’s operations.

When you wish to engage in a merger or acquisition system, you may encounter many challenges and complex negotiations that require the assistance of legal experts. Sahal Law Firm has the necessary expertise to solve all legal problems and provide your company with legal advice during each phase of the deal, including planning, negotiation, implementation, and restructuring.

Our Legal Services in Mergers and Acquisitions

Given our awareness of the importance of mergers and acquisitions in the Saudi market and their role in growing companies and increasing their competitiveness, we provide our legal services in this field to the highest standards. Our services include:

Drafting and reviewing merger and acquisition contracts.
Preparing analysis for merger and acquisition decisions.
Conducting legal due diligence.
Implementing all share transfer agreements and restructuring company structures.
Legal preparation for successful commercial transactions.
Obtaining all necessary approvals and permits from the relevant official authorities.
Providing legal advice on organizational strategies and compliance.
Offering legal advice on ownership rights and debts.
Closing mergers and acquisition deals.
Completing the sale of shares and assets.
Finalizing company division procedures.
Providing legal advice regarding mergers and acquisitions for both public and private companies.

We also support our clients in other legal services related to the transaction, such as employment, competition, intellectual property, and data protection, aiming to achieve success and sustain the growth and development of your company, regardless of its size or activity.

How to Begin Mergers and Acquisitions with Our Team’s Assistance

Once you get in touch with our team of lawyers and legal representatives, you will receive a timeline for the merger or acquisition process. Our team will help you determine whether these processes are financially viable and guide you through the correct legal steps in each phase of the process, which includes planning, negotiating the deal, and post-merger and acquisition strategies.

Key Criteria to Consider When Choosing a Lawyer for Mergers and Acquisitions

Naturally, when dealing with mergers and acquisitions in Saudi Arabia, you should look for the best law office to handle your case. Here are the key criteria to focus on when choosing the right lawyer in this field:

Choose law offices with a team of lawyers specializing in different fields. This diversity of expertise will undoubtedly help you get sound legal opinions and solutions.
A successful lawyer is one who is neutral, fair, diplomatic, and calm when dealing with cases and opponents.
It's advisable to visit the lawyer you intend to work with, as this meeting will determine if you feel comfortable with them, especially since some cases may require long-term collaboration.
The lawyer should have extensive experience in mergers and acquisitions in the Saudi market, having handled many cases in this field. This experience makes them more knowledgeable and well-versed in the latest laws and regulations.
The lawyer must possess good communication skills and follow-up, responding to your inquiries and keeping you informed about the latest developments in your case.

All of the above criteria are adhered to in our work, as we are a specialized team of highly experienced lawyers in handling the legal procedures for mergers and acquisitions in Saudi Arabia. So, don't hesitate to contact us if you want to achieve success and growth in your investment journey.

Why You Can Trust Us to Win Your Mergers and Acquisitions Cases

We have gained a wide reputation thanks to our dedicated team and the successful track record in numerous mergers and acquisitions cases in Saudi Arabia. Our goal is to be your legal partner, offering you the highest level of protection in all your legal dealings.

Our principles guide our work, and they play a significant role in our success, including:

Continuously developing the knowledge and practical experience of our team in the legal field.
Providing services with professionalism and high quality, following up on our clients’ cases until the best legal outcomes are achieved.
Our primary goal is to protect our clients' rights and ensure the confidentiality of their data.
Adopting modern methods and practices that contribute to speed, flexibility, smoothness, and accuracy in all our actions.
The ability to deal with various judicial, governmental, and administrative authorities, and all relevant bodies in Saudi Arabia to serve the interests of our clients.
Using modern technologies, tools, and programs that enable us to achieve the best possible results.

This makes you fully assured that your investment goals can be achieved with us, and you will feel this from the very first meeting with our team, who understands your legal requirements and works diligently to fulfill them with precision and care.

Conclusion

Experts in the economy indicate that mergers and acquisitions deals in the Saudi market have been on the rise recently, with both foreign and local companies engaging in these deals. These deals pass through several stages in the Saudi system, including:

Conducting negotiations.
Drafting contracts.
Obtaining approvals from the contracting parties.
Evaluating the assets of the merging companies.
Obtaining approval from relevant official authorities.
Preparing and auditing financial reports.
Determining how shares and stocks will be distributed.
Establishing pre- and post-merger and acquisition strategies.

At Sahal Law Firm, we provide a team of specialized lawyers in the mergers and acquisitions system, qualified to carry out all necessary legal services to complete successful transactions in this field across the Middle East.