Occasionally, corporations make decisions to buy other companies in order for such companies to provide services that help the corporation’s major activity or in order for corporations to make more profits of such companies. Such processes are called acquisitions, and they may be acquisitions of shares wholly or partially. Moreover, there is another type of processes which is called mergers; a merger is when two companies merge into one company with the purpose to work jointly in order to provide better services, diversify their current services, address market risks, or increasing the number of business available to them.
Hence, several issues arise in merger of companies with regard to the valuation of shares due to the fact the both companies practice their services continuously and in manner that varies from time to time. Furthermore, each company may be facing legal disputes that may or may not end well for the respective company, and the outcome of such disputes cannot be predicted till the issuance of the final verdict. More controversially, there are disputes that may have not yet reached the litigation stage, and they threaten the company’s valuations, as well as the contracts held by each company, those which are being acquired or those which are being negotiated. All the above raises controversies that require being settled through legal agreements and guarantees to predict all possible outcomes and their impact on the valuation.
Nour Attorneys & Legal Consultants team capably provides legal audit services in cooperation with a team of auditors to audit all the company’s transactions and financial records, ensure the validity of accounting reports for previous years, and verify if the company debts were bad debts or not and if some contracts were ostensible contracts for commercial purposes.
In addition to disputes with regard to valuation, there are many other points that affect the company’s value, such as the number of workers and employees and their entitled rights, for example, end of service gratuity, salaries, long-term liabilities, mortgages, etc., which are legal matters that require the opinion of an expert lawyer along with the accounting opinion of a financial auditor.
At Nour Attorneys & Legal Consultants, in co-operation with a professional team of financial auditors, we assist our clients in all types of acquisitions and mergers.