Mergers and Acquisitions in Hungary
Mergers and Acquisitions in HungaryUpdated on Monday 30th January 2023
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Company mergers and/or acquisitions in Hungary are generally used when smaller companies are assimilated by larger ones. The ultimate goal behind these procedures is to increase the shareholder value. Investors who want to buy or merge companies in Hungary should be well aware of the applicable legislation. Our lawyers in Hungary can offer you support and counselling when making any kind of business transactions.
Corporate acquisitions take place when a company takes over another company (usually a smaller one). Acquisitions can be friendly or hostile, according to how the two companies come to terms and perceive the acquisition.
Company mergers take place when two or more companies unite or when one company merges into another. Because the merging companies need to establish common goals, mergers are considered a friendly business procedure.
Types or merger and acquisition transactions in Hungary
According to the type of companies, mergers and/or acquisitions can be:
- horizontal: when the companies are competing companies and want to obtain a co-operational structure;
- vertical: when the supplier and consumer participate in the deal; or
- conglomeration: when two companies that do not operate in the same business sector make a deal.
Our lawyers in Hungary can offer you personalized advice, depending on your business plan and what you are hoping to achieve after a merger or acquisition procedure. They can also help you open a company in Hungary. Furthermore, if you are seeking legal help to apply for Hungarian citizenship, the services of our lawyers are at your disposal. Before you may apply for citizenship, you must have lived in Hungary continuously for eight years if you do not come from a Hungarian family or ancestry. However, many of the advantages enjoyed by EU citizens are also accessible to foreigners residing in Hungary. Unrestricted entry and exit from the Schengen area, 90-day visa-free stays in the majority of EU nations, and the opportunity to live and work in Europe.
Merger and acquisition procedures in Hungary
When deciding to take over or merge with an existing company, the buying company needs to have complete details about the financial situation of the acquired company. It is highly recommended to perform a complete and thorough due diligence procedure. During this procedure, all the available date about the company is collected, all the financial statements and other relevant document and a report is prepared at the end of the due diligence process.
By having a complete picture about the corporate issues of the company and even its relationship with its workers, business owners can make informed and correct decisions about merging with or acquiring an existing company.
Our law firm in Hungary is ready to help you if you are interested in M&A transactions. We can provide complete due diligence services and offer you counselling in various area of legal issues. Please contact us for more information. Our team of Hungarian lawyers can also help you open a bank account in Hungary.