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Using an Accounting and Consulting Firm in UAE to assist with Mergers & Acquisitions

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Bringing companies and organisations together is one of the most dynamic corporate practices a firm can undertake and pursue. Mergers and Acquisitions, or separations and divestitures are a complex affair. Mergers have gained popularity because of growing customer demands. The companies, in order to maintain ‘efficiency’, pool their resources. This arrangement leads to enhancement in company’s corporate structures too. Sometimes mergers create major players in the corporate world and this article ascertains the benefits of using an accounting and consulting firm in UAE to ease the process.

In UAE, the principles of contracts govern the M&A majorly. Federal Law Number (2) of 2015 – the Companies Law states that a UAE national should hold a minimum of 51% shares of an off-shore company. It is pertinent therefore for the buyers and sellers to exercise extensive due diligence and employ an accounting and law firm that provides correct legal advice.

Benefits of Partnering with an Accounting and Consulting Firm in UAE

The UAE being a regional business hub is the focal center point for M&A exchanges, and the accounting and consulting firms in UAE provide professional services to such corporate buyers and investors giving them strategic advice during the Merger & Acquisition cycle. Starting from selecting the right partner; reviewing the underlying rights; drafting and processing the transactional deals, whetting documents and agreements; integration and finally the closing of the deal is all taken care of with due diligence and insightful research. These outsourced finance firms also secure regulatory approvals from authorities and government required for corporate restructuring during mergers, acquisitions and alliances.

Their main goal is to ensure optimal outcome from the joint venture and deliver world class service standards; or in other words we can say ‘value creation’.

Accounting and consulting firms in Dubai provide audit and specialised consulting to its valued clients to improve their efficiency so that they thrive in the competitive environment. The nuances of the company/ client’s finances and the monetary state are assessed with full integrity and transparency and ethics.

Multidisciplinary teams are set up by an accounting and consulting firm in UAE to focus on compliance with accounting principles while assessing businesses so that an accurate financial picture is projected. This practice helps the firm in improving business operations of its client and in managing the capital life cycle. The type of merger and the structure, though largely depends on the size of companies and the industry. Whether it would be an ‘asset purchase’ or a ‘share acquisition’ depends on the assets and liabilities of the companies and also to a certain extent on the jurisdiction of the parties involved.

An advantage of using an accounting and consulting firm in Dubai is that it understands the customer’s/ client’s business to the core. Through their competence and experience, they ascertain the validity and reliability of information and also assure the third parties about the fairness of statements. Moreover, all the auditing processes are organised such that they do not in any way hamper or disturb the ongoing operations.

During the mergers and acquisition transactions, the bargain terms are carefully examined by the outsourced finance firms and accounting and consulting firms in Dubai highlight the key issues that ought to be considered. Considering the competitive market scenario of today, the M&A practice helps to create amalgamated organisations powered for future prosperity.