{"id":10486,"date":"2019-08-08T13:19:01","date_gmt":"2019-08-08T18:19:01","guid":{"rendered":"https:\/\/quadranslawandfinance.com\/?p=10486"},"modified":"2019-08-08T13:22:15","modified_gmt":"2019-08-08T18:22:15","slug":"mergers-divisions-and-liquidations","status":"publish","type":"post","link":"https:\/\/quadranslawandfinance.com\/en\/blog\/mergers-divisions-and-liquidations\/","title":{"rendered":"What are mergers, divisions and liquidations?"},"content":{"rendered":"<p>A firm or trading company is a legal entity whose objective is to hold commercial activities.<br \/>\nFrom the moment of its creation it may experience diverse changes due to any economic or<br \/>\nlegal processes that incentive the merger or division of the company.<\/p>\n<p>&gt; You may be interested in reading our entry: What you need to know to be an<br \/>\nentrepreneur in Mexico.<\/p>\n<p><strong>Merger:<\/strong><br \/>\nMergers allow firms to enhance their productive efficiency by reducing certain costs. It refers<br \/>\nto the acquisition of a company by another.<\/p>\n<p><strong>Types of mergers:<\/strong><br \/>\n\u25cf Absorption: There should be at least two companies for one to acquire the other.<br \/>\nThe acquiring company appropriates the assets, associates, and the totality of the<br \/>\nrights and obligations of the entity absorbed.<br \/>\n\u25cf Creation: Two or more companies are dissolved to form a new one. The new one is<br \/>\nformed by everyone while the original owners become shareholders of the new<br \/>\ncompany, thus assuming new rights and obligations.<\/p>\n<p><strong>Divisions:<\/strong><br \/>\nDivisions represent an undissolved company that yet transfers one or various parts of its<br \/>\nassets to one or more existing companies or for their creation.<\/p>\n<p><strong>Types of divisions:<\/strong><br \/>\n\u25cf Partial division: One or more parts of the company\u2019s assets and liabilities are<br \/>\nsegregated and transferred to new or already existing entities, but conserves a part<br \/>\nfor itself.<br \/>\n\u25cf Complete division: The company transfers the totality of its assets and liabilities in<br \/>\ntwo or more parts. For instance, one of the parts may be destined to be absorbed,<br \/>\nwhereas the other may support the creation of a new company.<\/p>\n<p><strong>Liquidations:<\/strong><br \/>\nBy the end of a company\u2019s activities, liquidation should be used to pay the totality of the<br \/>\nliabilities and distribute the remaining parts among its partners in accordance to the<br \/>\ncontributions each of them made.<\/p>\n<p>Bankruptcy is a prominent reason to liquidate a company, but some other reasons include:<br \/>\n\u25cf Expiration of the terms established in the social contract.<br \/>\n\u25cf Reduction of shareholders to the minimum allowed by the law.<br \/>\n\u25cf Loss of two-thirds of the share capital.<\/p>\n<p>It is paramount that all partners are present and the liquidator files a declaration of solvency.<\/p>\n<p>At QuAdrans Law and Finance we offer the fiscal service to provide you with fiscal advice<br \/>\nto carry out the merger, division, or liquidation of your firm. Whether it is national or foreign,<br \/>\nwe will help you through the complete process.<\/p>\n<h4 style=\"text-align: center;\">\nLegal and Accounting Consulting in Playa del Carmen<\/h4>\n","protected":false},"excerpt":{"rendered":"<p>A firm or trading company is a legal entity whose objective is to hold commercial activities. From the moment of its creation it may experience diverse changes due to any economic or legal processes that incentive the merger or division of the company. &gt; You may be interested in reading our entry: What you need [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":10484,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[51],"tags":[],"class_list":["post-10486","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-corporate"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>What are mergers, divisions and liquidations? - QuAdrans law and finance<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/quadranslawandfinance.com\/en\/blog\/mergers-divisions-and-liquidations\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"What are mergers, divisions and liquidations? - QuAdrans law and finance\" \/>\n<meta name=\"twitter:description\" content=\"A firm or trading company is a legal entity whose objective is to hold commercial activities. From the moment of its creation it may experience diverse changes due to any economic or legal processes that incentive the merger or division of the company. &gt; You may be interested in reading our entry: What you need [&hellip;]\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/quadranslawandfinance.com\/wp-content\/uploads\/2019\/08\/escisiones-fusiones-y-liquidaciones-01.jpg\" \/>\n<meta name=\"twitter:creator\" content=\"@QuAdrans_\" \/>\n<meta name=\"twitter:site\" content=\"@QuAdrans_\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Redacci\u00f3n QuAdrans\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/quadranslawandfinance.com\/en\/blog\/mergers-divisions-and-liquidations\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/quadranslawandfinance.com\/en\/blog\/mergers-divisions-and-liquidations\/\"},\"author\":{\"name\":\"Redacci\u00f3n QuAdrans\",\"@id\":\"https:\/\/quadranslawandfinance.com\/#\/schema\/person\/1e795a3d0e6c3e3c5d0ba2f035562767\"},\"headline\":\"What are mergers, divisions and liquidations?\",\"datePublished\":\"2019-08-08T18:19:01+00:00\",\"dateModified\":\"2019-08-08T18:22:15+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/quadranslawandfinance.com\/en\/blog\/mergers-divisions-and-liquidations\/\"},\"wordCount\":403,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/quadranslawandfinance.com\/#organization\"},\"image\":{\"@id\":\"https:\/\/quadranslawandfinance.com\/en\/blog\/mergers-divisions-and-liquidations\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/quadranslawandfinance.com\/wp-content\/uploads\/2019\/08\/escisiones-fusiones-y-liquidaciones-01.jpg\",\"articleSection\":[\"Corporate\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/quadranslawandfinance.com\/en\/blog\/mergers-divisions-and-liquidations\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/quadranslawandfinance.com\/en\/blog\/mergers-divisions-and-liquidations\/\",\"url\":\"https:\/\/quadranslawandfinance.com\/en\/blog\/mergers-divisions-and-liquidations\/\",\"name\":\"What are mergers, divisions and liquidations? 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