M&A deal structures, Investment Transactions

• expansion of activity scope;
• expansion of new markets;
• more resources available;
• better product quality;
• better competitive performance.

It is clear that a holding brings many advantages that are beneficial from the business standpoint. This explains the recent significantly increased interest in their creation. The most common way to set up a holding is to conclude an investment agreement.

It should be noted that in 2022 restrictions were implemented in Russia on the sale/purchase of shares in companies by shareholder from unfriendly countries. The Government has approved a list of unfriendly countries, which includes more than 40 states. Process takes more time as usual.

The creation of a holding, that is, the conclusion of an investment deal, is preceded by many procedures that each company planning to merge must follow.

Some of these procedures include:

• checking the counterparty on financial and economic stability;
• verification of the acquired companies’ good faith in terms of compliance with the law and the absence of claims / pending cases from the relevant supervisory state agency;
• preparation and conclusion of an investment agreement, taking into account all peculiarities and identified risks.