Legal regulation of mergers and acquisitions has recently been markedly improved. Antitrust law provisions in respect of the acquisition of businesses have been simplified, and monetary and company law provisions have been reformed – squeeze-outs are now possible. Since recently, Russian shares may be paid in foreign currencies.
Amendments to the Russian Law on Limited Liability Companies complicated the process of acquiring shares in a company’s authorized capital: share transfer agreements now need to be notarized; meanwhile, prior to July 2009 a simple written form was accepted. On the other hand, in early 2012, two new types of business were introduced: investment partnerships and economic partnerships, which imply an easier share transfer process.
We are willing to provide support for your project starting at the very first steps – preparation of a confidentiality agreement and so-called memorandum of understanding over the course of legal and tax due diligence, preparation and approval of the terms and conditions of the share purchase agreement, etc. to the last formal steps – signature of the agreement before a Russian notary public.
If you intend to strengthen your share and business standing on the Russian market and purchase information, technology, and other assets while at the same time mitigating existing risks by means of sharing or cooperation, you should consider establishing a joint venture.
Joint ventures with Russian partners are a very appealing opportunity to secure a strong foothold on the Russian market. Such a strong foothold is secured, aside from professional legal procedures, by acquiring information, including information about the seller (access to which is often restricted), market conditions, and potential risks.
The question of whether the establishment of a joint venture with a partner is feasible and whether it will yield profits can be answered only after a complete assessment of all the existing circumstances and conditions, including potential conflict risks between long-term and short-term interests, conflict situations, etc.
Our primary concern during the entire process will be to protect and pursue your interests. Our experience allows us to prevent potential risks for your business and protect your interests even in the most challenging situations.