Strategic And Financial Dimensions Of Funding Mergers And Acquisitions: A Legal And Economic Analysis
- IJLLR Journal
- 1 day ago
- 1 min read
Mahadeva Prabhu N, LL.M., JSSLC, Mysuru.
ABSTRACT
In today's global economy, mergers and acquisitions (M&A) have become strategically important tools for company reorganization and expansion. Nevertheless, financing these deals entails intricate financial processes as well as important legal issues. This document offers a thorough examination of the economic and strategic aspects of financing M&A, with an emphasis on legal frameworks and ramifications for the economy.
Examining the appropriateness of various financing strategies in various M&A scenarios, the study looks at debt, equity, leveraged buyouts, and hybrid instruments. The legal and regulatory obstacles related to finance are also evaluated, including adherence to taxation standards. Using case studies from India and other countries, this study assesses how businesses organize their finance plans in accordance with regulatory requirements and market dynamics. The objective is to provide a multidisciplinary perspective that integrates finance, strategy, and law to guide future research and practice in M&A financing.
Companies can gain growth, increase their market share, acquire new capabilities, or restructure their operations through the use of mergers and acquisitions (M&A). Although M&A activity is frequently motivated by strategic considerations, finance strategies and legal compliance have a significant impact on the viability and success of such transactions. Financing M&A is more than just a financial choice; it also needs to be in line with regulatory requirements, corporate governance standards, and strategic goals. This essay combines financial theory and legal analysis to examine these aspects from an interdisciplinary perspective
Keywords: Strategic, Merger, Acquisition, Financial, Funding.
