Resolve M&A Disputes in Germany
Resolve M&A Disputes in GermanyUpdated on Wednesday 01st June 2016
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A way in which foreign investors can enter the German market is through mergers and acquisitions (M&A). The merger refers to the unification of two different companies, which will form a larger and more powerful business, while the acquisition refers to the process of purchase of a company by another company. These procedures can have many advantages, but they can also imply several risks, which can refer to various types of disputes arising between the parties involved. Businessmen who are involved in a M&A dispute in Germany can receive legal assistance from our team of German lawyers, who can offer a suitable solution to the specific situation.
Mediation in M&A disputes in Germany
One of the legal ways in which M&A conflicts can be resolved in Germany refers to mediation, which is a suitable procedure, applicable when the parties are willing to conclude an agreement favorable to both sides. During this procedure, the parties will negotiate upon the matter in ways which are not enforced by the German law, as the procedure is held without the assistance of a local court.
The legal terms for the mediation procedure are enacted under the Mediation Act, which has been introduced in 2012. Although the procedure offers many advantages to the parties, it is important to know that Germans prefer to bring the case in front of the court, as the German law system is reliable and efficient.
Arbitration in M&A disputes in Germany
Arbitration is a procedure which is recommended in the situation of complicated cases of M&A disputes. An important aspect refers to the fact that the parties involved are allowed to decide the participation of the arbitrators, in accordance with their expertise in the field.
A case handled through arbitration can be resolved in a period of two years and this is applicable even for complex disputes. The procedure is carried out in accordance with the provisions of the German Arbitration Law, which become effective in 1998; our team of German attorneys can provide more information on this subject.
Litigation in M&A disputes in Germany
Parties can appeal to litigation when they consider that their particular situation can’t be resolved in an amicable manner. Legal proceedings can start when one of the parties files a claim at a local court. Although such cases may take years to be resolved, it is important to know that the German court system is considered to be one of the most transparent and independent judicial systems at a worldwide level.
Our lawyers can provide solutions to post M&A conflicts or to conflicts that may appear during the procedure, such as the breach of a contract.
Persons who are involved in an M&A dispute can contact our German law firm for legal assistance or legal representation.