INTRODUCTION TO MERGERS AND ACQUISITION IN CAMEROON
Mergers and acquisitions are often used synonymously however some distinction do exist between this two concepts. A business combination which involves the fusion of two or more entities into one , largely on equal terms is referred to as merger whereas an acquisition is essentially the purchase by one company of all or substantial interest of another company such that the acquired company becomes a subsidiary of the acquired company.
MERGERS AND ACQUISITION ADVISORY SERVICE
M & A advisory services is aimed at addressing corporate business problems thus enhancing efficiency and profitability of business organizations in Cameroon. Here are some of the reasons why business enterprises are in need of mergers and acquisition services in Cameroon: Foreign investors ,economic of scale ,risk diversification ,technology drive ,management expertise , corporate leverage and stock exchange quotation.
All corporate organization should ensure mergers and acquisition advisory services are handled by experience consultants and in strict compliance with the laws of the republic. The corporate expert is expected to conduct due diligence, draft the merger and acquisition document, contracts, company resolutions which must be adopted by the board of directors of the company and accordingly filed /published. Mergers and acquisition advisory services in Cameroon cannot be exhausted in this write up, however the merger contract must contain the following: –
- The form, name and registered address of the participating companies
- The reason and terms of the merger
- Description of assets /liabilities to be transfer to the new company
- Terms of transfer of the share or stock
- Report on the exchange of the company entitlement
- The projected amount of the merger
The Cameroon Business environment is not a stranger to merger and acquisition. As enunciated above, merger and acquisition strategy are a reliable way for business growth and expansion of a company’s production capacity in a surviving or evolving entity. It has been a major strategy employed in the modern business environment for competitive merits.
It important to point out that the companies merging would be restrained by the commission where the merger would cause substantial restraint of competition or monopolies any line of business. So, the purpose of a merger should be for investment and not to monopolies a business environment.
Finally, we can represent you in the entire transaction in Cameroon
Article by Barr. Mafany Victor Ngando
‘‘The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.’’