Business & Entrepreneurship Journal

Law and Order in Mergers and Acquisitions. A Theoretical Framework and Reference to the Legislative Part

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  • Abstract

     

    There are many scientific approaches in the legal literature on how commercial law is able to affect the economic development of a state and the field of Mergers and Acquisitions (M&A) is no exception and especially when it comes to capital coming from another country for cross-border M&A that are very important in increasing a country's foreign direct investment.

    In every country's economy, M&A and so commercial law play an important role for growth by creating economies of scale and scope. So, usually, the commercial law in M&A is governed by commercial codes and other special laws to ensure their quality and integrity. For this purpose, governments have developed a special legislative framework of commercial in M&A before and after the completion of the procedures in order to expand the economies of the states and improve business performance, thus maintaining suitable competitive environments to improve business performance while ensuring the employee personnel indirectly involved in the whole process.

    The study aims to show that the legal procedures of commercial law in the European Union and of its country can influence the characteristics of both domestic mergers and acquisitions and cross-border M&A.