M&A

Reorganization is a complete or partial change in holders of a company equity rights; change of corporate form; termination of some structural subdivisions or establishment of several more, within one enterprise, which results in assignment and acceptance of its property, funds, rights and obligations by a successor.

Reorganization is carried out based on a relevant decision made by founders (members) or a legal entity’s body which is authorized for such actions with the incorporation documents. In some cases, reorganization of legal entities is realized based on a decision of competent government bodies or a court, or under a permission of competent government bodies.

As provided by law, reorganization is carried out in the following ways: merger, acquisition, split, spin-off, and reconstruction.

In case of entities merger, all property rights and obligations of each merging entity are succeeded by a resulting entity.

In case of acquisition of one or several entities to another entity, the latter succeeds all property rights and obligations of the acquired entities.

In case of an entity split, all its property rights and obligations are succeeded in respective shares, as specified in a title transfer protocol (balance sheet), to each of new entities resulting from such split.

In case one or several entities spin-off, each of them succeed property rights and obligations of re-constructed entity in respective shares, as specified in a title transfer protocol (balance sheet).

In case one entity is re-constructed into another one, the resulting entity will succeed all property rights and obligations of the former entity.

Before initiation of entity reorganization process, it is necessary to study carefully all pros and cons of each of the above variants, considering peculiarities of business and needs of your company.

‘KD CONSULTING’ legal & consulting firm will provide in-depth consultancy concerning reorganization of entities, will focus on all issues of concern related to such process. Our specialists will provide you with full legal support of any reorganization. We will develop an optimal reorganization plan for you and implement it within the shortest possible time. If necessary, we will render a full range of services related to obtaining required permissions (e.g. permission from AMCU) and provide consultancy on taxation etc.