Mergers and acquisitions in the UAE require experts who have knowledge of the legal and tax system of the country. We are one such top-notch firm that can help you get the best mergers and acquisitions services as per your requirement. We aim to find and choose the businesses for you that can grow, are available at a reasonable cost, and have a satisfactory reputation.
Mergers and Acquisitions Advisory Services in Dubai
Our M&A experts are the veteran consultants who have handled a lot of mergers and acquisitions for our clients. They possess a thorough knowledge of the rules and regulations of the UAE.
We will provide you with all the support you need during the transaction and in reorganizing the structure of the company.
The first step is to shortlist all the acquisition targets. For all the targets, we conduct a business valuation and compare the value of all the entities. We would also be present at the time of negotiations and support your business with contract formation to acquire a business in Dubai or anywhere in the UAE.
Even after the satisfactory completion of mergers and acquisitions, our work does not end. N R Doshi and Partners are always present for their clients for post-transaction formalities and arrangements.
We also manage the organization’s rearrangement to align it with the current company structure for mergers and acquisitions in Dubai.
We can also handle the resource organization and structuring, business processes planning, and VAT registration for the acquired business.
Mergers and Acquisitions We Offer
There are multiple ways how you can acquire a company. Most of the consulting firms offer services limited to share acquisition. Though known to be one of the best ways for mergers and acquisitions, we provide two more ways to cater to our clients, as they want.
Statutory Merger is less common than share purchase, as it is not that straightforward and simple. However, you need not worry about the hassle. Depending upon the acquisition, we will advise you with the suitable acquisition method and take care of the complete mergers and acquisitions process.
In the case of a statutory merger, your company will absorb the company completely. Therefore, the acquired company will not be a legal entity on its own. We can also prepare a merger agreement between the parties with all the terms and conditions.
It’s quite common in the UAE to have auction sales of large-sized businesses compared to mid-size and small-sized businesses. Usually, strict laws and regulations do not govern auction sales. However, the offering must be made under the UAE Companies Law.
We own thorough knowledge of the UAE Companies Law and know how to keep your mergers and acquisitions in UAE compliant with it. We scrutinize the business before the auction keeping multiple factors into consideration. The factors include the current presence in the market, asset values, prospects, etc. Based on the valuation, we decide a bid price and send you the complete report for your approval.
Preparation of Preliminary Agreement for Mergers and Acquisitions
Here, our M&A consulting firm can create preliminary agreements on behalf of both parties. It is necessary to create these agreements to avoid fraudulent acts and move forward with a professional approach.
Though this agreement is necessary from the seller’s perspective, we can handle it to check if all the terms placed by the seller are adequate or not.
During asset sales, the seller must share confidential information with the buyer. Using the information, the buyer can conduct due diligence. We make sure that you get all the necessary information under this contract. Further, if you want, we can even conduct due diligence on your behalf to assist you in the process of mergers and acquisitions.
There are multiple letters of intent required, such as a memorandum of understanding to accommodate all the necessary details. These may include pricing, assets information, terms and conditions, due diligence process, and timeframe.
This is one of the essential agreements for the buyer party. Therefore, our M&A consulting experts prepare them with the utmost care. The agreement does not allow the seller party to engage with other parties while the buyer party conducts due diligence.
This would support you in assuring that the seller party would not get involved with other parties. This provides an opportunity to the buyer to conduct due diligence with a free mind.
We Provide Service for
All Types of Acquisitions
Whatever is the acquisition target: share purchase,
statutory merger, and auction merger, we are here to serve you
Documents Preparation Service for Mergers and Acquisitions in UAE
We take care of the documentation requirements during the mergers and acquisition process. You can let our M&A consulting experts know if you have any specific requirements. We will strive to incorporate it along with the documentation. Check the list of documents we will prepare for you under mergers and acquisitions services:
- In case of a share purchase or statutory merger, any of the parties can prepare the agreement for sale and purchase. However, we do not prepare the document in case of auction sales, as the selling party decides the terms.
- The seller party provides a disclosure letter. On your behalf, we can go through it and examine it thoroughly for any errors or omissions.
- We take the responsibility of preparing a share transfer document. Along with that, we also amend and produce a new version of the company’s memorandum of association.
- We prepare documentation for shareholders’ resolution and other corporate approvals.
- We also work on the power of attorney documentation.
- We may also need to prepare a transitional services agreement and employment agreement depending upon its nature.
- In the case of share purchase, we will be creating separate documentation for each asset purchase.
Business Valuation is necessary before you get into a deal with the seller. You will have no idea about the business’s actual cost if you do not conduct a business valuation. On your behalf, N R Doshi and Partners would be glad to evaluate your business.
It is necessary to conduct an advanced level of financial analysis to find the correct value of the business. A buyer must not compromise on business valuation. Low-cost business valuation may lead to wrong deals. Therefore, it may cause you loss of money after mergers and acquisitions.
A financial analyst calculates the business value according to several factors, which are mentioned as follows:
- Company’s management and resources that can be put to use after the acquisition.
- The organization’s structure.
- Forecast regarding future earnings against a particular investment selected by the buyer.
- The market value of assets.
Many more factors affect business value, but these are the primary ones. There are various models to evaluate a business from the point of view of mergers and acquisitions. However, there are only three primary approaches, which N R Doshi has utilized to create its proprietary model:
We use this approach in the case of businesses where the cash flow is highly predictive. The approach allows us to identify the generation of cash flow against the risk associated with it. If the risk is high and cash flow is low, the acquisition is not considered worthy.
There are numerous predefined common variables such as cash flow, profit, sales’ book value, etc. Based on these variables, we compare the assets and their values.
Contingent Claim Valuation
This is a highly complex approach but the most effective one if you wish to identify the exact pricing. There are three primary approaches:
- ) Asset Method
- ) Market Method
- ) Income Method
There are various methods under these approaches. We use different methods in accordance with the type of acquisition. Using multiple approaches, we get different valuations; however, it gives us a precise idea of the value. We match the analyzed value with the buyer’s offer and conduct negotiation accordingly.
Know the real value
of a business before acquiring!
Utilize our business valuation services
Why Choose N R Doshi and Partners?
We are one of the prime mergers and acquisitions consultants in UAE. We know how to find the business you require and how to evaluate it. Our experts have conducted a lot many mergers and acquisitions. In this thirty-five-years long journey, we have helped our clients grow by acquiring the most profitable businesses.
Sometimes, we were even on the other side of the road, helping businesses sell their business at an excellent price. Therefore, we have the expertise to handle both sides of the mergers and acquisition transactions. N R Doshi and Partners ensure that whatever deal takes place helps the parties achieve the milestone they wanted.
- Our expert team is one of the biggest strengths of our services, as they know how to get the best deals. Under their supervision, many of the businesses have acquired deals that are once in a lifetime opportunity. The growth and summit, which our clients have achieved, reflect the work of the N R Doshi team.
- Our ethics bound us to deliver the best to the clients. We remain committed and dedicated to delivering whichever service our clients choose. We ensure to keep their data safe, help them have a hassle-free mergers and acquisitions transaction, and support them with the post-transaction requirements too.
What if a seller misrepresents his business and misleads the buyer?
If the seller misrepresents his business, he will be considered liable and might face penalties and imprisonment for trickery. However, it is necessary to provide proof of misrepresentation.
Are there any bounds on the use of languages in the mergers and acquisitions documents?
There are some documents that you need to produce in dual languages: Arabic and English. In case if the Arabic language is not present on the document, it may be considered null. Moreover, when both, Arabic and English are present on the document, whatever written in the Arabic language will be considered legal, and English just acts as a medium for understanding the agreement.
What if the seller has not consulted about asset sale and share sale with his employees?
The seller has no legal obligation regarding consultation with his employees before selling assets or shares. Therefore, the buyer will never be affected if the employees are unaware of the acquisition.
When it comes to Mergers and Acquisitions
Let the best in the business be your helping hand!