The client required assistance in the acquisition of a public limited company in India that focused on manufacturing process control instruments.
Client : A Swiss Process Control Instruments Manufacturing Company
Service Offered : Mergers, Acquisitions, Divestitures & Restructuring
Sector / Industry : Manufacturing
The client required assistance in the acquisition of a public limited company in India that focused on manufacturing process control instruments.
After understanding the challenges of the engagement, we structured our approach to ensure that requirements of all parties were met. First, we undertook financial and tax due diligence to understand the potential risks in the acquisition and identified steps to be taken for minimizing the potential risks. Next, we recommended transferring 90.01% of the shares to the buyer as minority shareholders holding 10% shares or more have the right to file claims against the company for oppression and mismanagement.
Our solution helped both parties achieve their desired objective in terms of a tax efficient structure, safeguarding the interest of both buyers and sellers by creating an escrow arrangement and efficiently carving out non-core assets of the promoters. In addition, we also supported the client in the smooth implementation of the structure.
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