Updating of legal regulations as a tool to reduce property and legal risks during mergers and acquisitions

Abstract

The essence of mergers and acquisitions (M&A) deals is to reorganize the business, primarily in order to increase profits, strengthen its position in the market, and get rid of a competitor. Mergers and acquisitions help businesses increase their assets. In accordance with the Russian regulatory framework, which regulates corporate relations in the organization, acts have been adopted regulating various aspects of activities in Russian commercial organizations, including mergers and acquisitions. The paper notes that the main problem of M&A transactions is that the legislation of the Russian Federation lacks specific rules for regulating the process of mergers and acquisitions. Such a lack of specific laws, as well as regulatory legal acts, hinders many processes in conducting mergers and acquisitions, thereby increasing the level of regulatory risk. In addition, there is practically no legislative control over the M&A process in the Russian Federation. It is concluded that it is necessary to develop and improve the regulatory framework as one of the risk management tools that reduces such types of risks as market, credit, financial, liquid, loss of solvency, financial stability, etc.