Glory Tharakan, Research Scholar, School of Legal Studies, Cochin University of Science and Technology
Dr. Binumole K., Assistant Professor, School of Legal Studies, Cochin University of Science and Technology
ABSTRACT
Mergers and Acquisitions (M&A) are intricate business transactions that have a big impact on the firms involved and the stakeholders. The article explores how important the board of directors is to making M&A successful. We examine the diverse duties of the board: We look at the board's accountability for assessing alignment. Serving as a strategic guide, the board assesses how well the target company fits into the current business plan and long-term objectives. Potential synergies, market expansion prospects, and technical improvements are all evaluated in this analysis. Ensuring fiduciary duty to shareholders is another crucial function of the board. This calls for a thorough analysis of the deal's financial feasibility to guarantee that fair value is acquired or offered. The board will inevitably be in charge of the merger process. The board actively supervises the M&A process rather than just approving transactions. This involves exercising control over the outcomes of the due diligence process, controlling integration risks, and ensuring that communications with shareholders and other stakeholders are transparent. The changing M&A landscape—in which company purpose and financial criteria are increasingly taken into account— is also covered in the essay. Through efficient performance of its supervisory function, the board may present M&A as a catalyst for the generation of sustainable value.
