Mergers and demergers — groups and family offices
Company merger lawyer in Paris: restructuring without losing control.
Merger by absorption, merger by formation of a new company, demerger, partial transfer of assets: the structure is chosen before the merger agreement is drafted. As a company merger lawyer in Paris, the firm drafts the agreement, secures the exchange ratio, manages the regulated timetable and defends the transaction against challenges.
The creditors' opposition period and the availability of documents thirty days before the meeting cannot be made up later: the timetable is locked in from the draft merger agreement.
Company mergers and demergers · Paris
Get a first analysis
Intra-group merger, demerger or partial transfer of assets: send the articles of association, the accounts and the group structure chart. The firm replies within 24 business hours with a first outline of the structure.
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Kohen Avocats, Paris 17
Merger and demerger: what really decides the transaction
Company law · Paris 17th arrondissement
What a company merger and demerger lawyer in Paris does
- Paris Bar
- Company law
- Firm in Paris 17th
Lawyer at the Paris Bar — restructurings and group transactions.
The structure comes first: absorption to simplify a group, formation of a new company to bring entities together in a neutral vehicle, demerger to separate them, partial transfer of assets to move a business branch without dissolving the company. The merger agreement sets the scope, the exchange ratio, any cash balancing payment and the effective dates. The timetable is regulated: filing with the court registry, publicity opening the creditors' opposition period, and the merger auditor's report thirty days before the extraordinary general meeting. Universal transfer of assets and liabilities (TUP) moves everything by operation of law, except intuitu personae contracts — which need an express transferability clause — and personal authorisations.
Send what you have, even if incomplete: the firm will prioritise and complete the file with you. In an emergency, call +33 6 46 60 58 22.
Official profile in the directory of French lawyers (CNB)Firm at 11 rue Margueritte, 75017 Paris
Universal transfer, the central effect
A merger entails dissolution without liquidation and universal transfer of assets and liabilities (Article L. 236-3 of the French Commercial Code): assets, debts and contracts pass by operation of law — except intuitu personae contracts and personal authorisations.
The exchange ratio, the point of friction
Two conflicting valuations, several methods cross-checked, a report by the merger auditor: a poorly documented exchange ratio is open to challenge by minority shareholders.
The favourable tax regime
Article 210 A of the French General Tax Code (CGI) exempts capital gains on contributions subject to strict conditions on taking over commitments: the tax simulation comes before the choice of structure.
The structure
Choosing the vehicle before drafting the merger agreement
Four rules shape the restructuring.
- A merger entails dissolution without liquidation and universal transfer of assets and liabilities (Article L. 236-3 of the Commercial Code); a 100%-owned subsidiary benefits from the simplified regime, with no report or meeting (Article L. 236-11).
- The merger agreement sets the scope transferred, the exchange ratio — two conflicting valuations, methods cross-checked — the cash balancing payment and the legal, accounting and tax effective dates.
- The timetable is regulated: filing with the court registry, publicity opening the creditors' opposition period, the merger auditor's report at least thirty days before the meeting, and availability of the documents.
- Where proceedings are pending, universal transfer requires claims to be directed against the absorbing company (Cass. com., 18 September 2024, No. 23-13.453).
There are two practical limits to universal transfer: intuitu personae contracts (franchise, concession, agency mandates, sensitive banking agreements) require a transferability clause or the counterparty's consent, and personal administrative authorisations may require a new approval. For tax purposes, the favourable regime of Article 210 A of the General Tax Code is earned by taking over the commitments on the liabilities side exactly.
Your documents
What to gather to structure the transaction
The exchange ratio is documented in writing, using two converging methods.
Position A
Participating companies
- Articles of association, shareholders' agreements and capitalisation tables
- Accounts for the last three financial years and interim statements
- Inventory of key contracts and intuitu personae clauses
- Administrative authorisations and personal approvals
Position B
Transaction
- Draft merger agreement: scope, exchange ratio, cash balancing payment, effective dates
- Conflicting valuations and the methods chosen
- Tax simulation under the favourable regime of Article 210 A
- Headcount and consultation of the works council (CSE) where applicable
Frequent errors: exchange ratio documented by a single method; key intuitu personae contract discovered after publication; Article 210 A commitments taken over incompletely.
The firm also structures:
- Simplified merger (Article L. 236-11)
- Partial transfer of assets
- Partial demerger
- Merger during pending proceedings
The method
How the firm supports you
Any procedural approximation weakens the transaction and may justify nullity.
Step 1
Framing the structure
Review of the shareholding structure, choice between merger, demerger and partial transfer of assets, tax simulation under the favourable regime.
Step 2
Merger agreement and auditor
Drafting of the draft merger agreement, appointment of the merger auditor, reports on the exchange ratio and the value of the contributions.
Step 3
Publicity and meetings
Filing with the court registry, publication opening the creditors' opposition period, availability of documents for thirty days, extraordinary general meeting of each company.
Step 4
Post-transaction
Re-establishing security interests, informing counterparties, tax filings, accounting merger, managed integration.
Benchmarks: thirty-day creditors' opposition period; nullity of mergers subject to a six-month limitation period (Article L. 236-2-1); recapture of capital gains on buildings over fifteen years under the favourable regime.
The timetable
The timeline of a merger
A simple intra-group transaction is completed in a few months; complex structures take longer.
Framing
Month 1. Choice of structure, tax simulation, shared dated timetable.
Merger agreement
Months 1-2. Drafting of the agreement: scope, exchange ratio, cash balancing payment, effective dates.
Auditor
Month 2. Appointment, work, reports on the exchange ratio and the contributions.
Publicity
Months 2-3. Filing with the court registry for each company, publication, opening of the creditors' opposition period.
Meetings
Months 3-4. Documents made available thirty days beforehand, votes at the meetings, recording of completion.
Month 4 onwards
BODACC publication, deregistration of the absorbed company, accounting, tax and operational integration.
The checks
What the firm checks before the merger agreement
No filing until these points have been validated.
- Structure suited to the objective: consolidation, neutrality of the shareholding, tax, a workable timetable.
- Exchange ratio documented by at least two converging methods.
- Intuitu personae contracts: transferability clauses or consents obtained before publication.
- Personal administrative authorisations and regulated approvals.
- Conditions of the favourable regime of Article 210 A: taking over provisions, special reserve, recapture of gains.
- Employment aspects: transfer of contracts, information and consultation of the works council (CSE).
Summary
Situation, risk, document, decision
The most frequent trade-offs the firm sees in mergers and demergers.
Situation
100%-owned subsidiary to be absorbed
Main risk: A heavier and more costly procedure.
Document to prepare: Simplified regime under Article L. 236-11.
Recommended decision: Use the simplified merger, without a report or a meeting.
Situation
Unbalanced balance sheets between the absorbing and the absorbed company
Main risk: Exchange ratio challenged by minority shareholders.
Document to prepare: Detailed merger auditor's report.
Recommended decision: Document two converging methods in writing.
Situation
Key contract containing an intuitu personae clause
Main risk: Termination triggered by the restructuring.
Document to prepare: Counterparty's approval obtained in advance.
Recommended decision: Request the consent in writing before the merger agreement is signed.
Situation
Bank creditor opposing the merger
Main risk: Unenforceability, immediate payment or security.
Document to prepare: Letter of guarantee or mortgage security.
Recommended decision: Negotiate the lifting of the opposition against equivalent security.
Situation
Employees transferred across several sites
Main risk: Challenge to the application of Article L. 1224-1.
Document to prepare: Information of the works council (CSE) of the companies concerned.
Recommended decision: Document the new organisation and the contracts taken over.
Situation
Regulated activity (health, finance, security)
Main risk: Loss of approval or authorisation on merger.
Document to prepare: Prior check with the competent authorities.
Recommended decision: Make the effective date conditional on obtaining the approvals.
The firm's practical cases, with figures
Three recent restructuring matters, with amounts rounded for confidentiality.
Three restructuring matters handled recently, chosen for the range of amounts and of corporate issues involved.
Intra-group merger of a holding company and an operating company, €1.8 million of simplification
Absorption of the operating company (SARL) by its property holding company, optimisation of the parent-subsidiary regime, elimination of intra-group invoicing, annual saving of approximately €1.8 million over three years. Favourable regime of Article 210 A of the General Tax Code applied in full, no creditor opposition filed.
Partial demerger of a property portfolio, €4.2 million of assets separated
Partial demerger of a family simplified joint-stock company (SAS) holding €4.2 million of real estate alongside an operating business. Two receiving companies were created, one receiving the real estate, the other keeping the operating business. Exchange ratio validated by the demerger auditor, universal transfer of assets and liabilities effective without termination of the lease.
Bank creditor's opposition resolved by a €280,000 guarantee
Merger by absorption of a subsidiary into its parent company, challenged by the creditor bank, which feared a weakening of its claim. The firm negotiated the lifting of the opposition in return for an independent first-demand guarantee of €280,000 and a joint and several guarantee from the holding company. Transaction validated and BODACC publication completed.
Frequently asked questions
Your questions: company mergers and demergers
What is the difference between a merger by absorption and a merger by formation of a new company?
A merger by absorption makes the absorbed company disappear by universal transfer of its assets and liabilities to a pre-existing company (the absorbing company). It is the most common structure for simplifying a group. A merger by formation of a new company brings together two or more pre-existing companies in a newly registered neutral vehicle, which receives all of their assets and liabilities. The choice depends on the objective (consolidation of assets, neutrality of the shareholding, tax considerations) and on the timetable that is workable.
What is universal transfer of assets and liabilities (TUP) in a French merger?
Universal transfer of assets and liabilities (TUP) is the main legal effect of a merger by absorption or of the dissolution without liquidation of a company with a sole shareholder. The receiving company takes over, as a whole, all the assets and liabilities of the company that disappears: assets, liabilities, contracts, employees, security interests, pending proceedings. The transfer takes place by operation of law, without any need for an item-by-item transfer. It also applies to a demerger, with an allocation among several receiving companies. Article L. 236-3 of the French Commercial Code (Code de commerce) sets out the regime.
How is the share exchange ratio calculated in a merger?
The exchange ratio rests on two conflicting valuations of the companies concerned at the reference date. It may combine several methods: multiples of listed comparables, discounted cash flows, revalued net assets. The merger auditor's report checks the consistency of the ratio adopted. A challenged ratio may give rise to an action for liability against the directors or an action for nullity of the merger, the latter being subject to the limitation period of Article L. 236-2-1 of the Commercial Code.
How long does a creditor have to oppose a merger?
Non-bondholder creditors of each participating company whose claim predates the publicity given to the draft agreement may lodge an opposition within a statutory period running from the last publication. The court seised may reject the opposition, or order repayment or the provision of sufficient guarantees. Until a decision is given, the merger remains enforceable against a creditor who has received payment or a guarantee. The Court of Cassation (Cass. com., 7 October 2020, No. 19-14.755) confirmed the practical scope of this mechanism.
Is a merger auditor always required?
No. The merger auditor's report on the exchange ratio may be dispensed with by unanimous decision of the shareholders of the companies concerned (Article L. 236-10 of the Commercial Code). However, the report on the value of contributions in kind is still required where it is mandatory. For the simplified merger of a company 100% owned by the absorbing company, several steps are lightened, but formal traceability remains essential to preserve the legal certainty of the transaction.
Are intuitu personae contracts transferred to the absorbing company?
Not automatically. Contracts concluded in consideration of the identity of the contracting party (franchise, exclusive concession, agency mandate, intellectual services, sensitive banking agreements) may require a new express consent from the counterparty on a merger. Without an express transferability clause or approval, the counterparty may refuse the transfer and obtain termination. A prior contract review and the collection of written consents before the merger agreement is signed avoid this structural risk.
Are employees transferred to the receiving company in a merger?
Yes, automatically and by operation of law. Article L. 1224-1 of the French Labour Code (Code du travail) provides that all employment contracts in progress on the date of the change continue between the new employer and the staff of the business. The receiving company takes over seniority, contractual bonuses, accumulated days, employment tribunal claims and collective commitments. Prior information of the social and economic committee (CSE) of each company concerned is mandatory.
What is the favourable tax regime of Article 210 A of the CGI?
The favourable regime of Article 210 A of the French General Tax Code (Code général des impôts) allows capital gains on contributions and profits arising from the merger to be exempted from corporate income tax. It is subject to several written commitments in the merger agreement: taking over deferred provisions and the special reserve on the liabilities side, substitution for the recapture of deferred results, calculation of later capital gains on the earlier tax value, recapture over fifteen years for buildings and five years for other depreciable assets. Careless drafting loses the benefit of the regime.
What is the difference between a merger and a partial transfer of assets?
A merger makes the absorbed company disappear and transfers all of its assets and liabilities. A partial transfer of assets transfers only a complete branch of activity to a third-party company, without dissolving the contributing company. The latter receives shares of the receiving company in return. A partial transfer is useful to isolate an activity in a dedicated subsidiary or to prepare a later sale. The legal regime comes close to that of a demerger where the partial transfer is deliberately placed under the demerger regime.
How long does a merger by absorption take?
A simple intra-group merger (subsidiary absorbed by its 100% parent) is completed in two to three months between signing of the merger agreement and BODACC publication. A merger between two independent companies generally takes four to six months, allowing for the conflicting valuations, the merger auditor's report, the meetings and the clearing of oppositions. A complex demerger with several receiving companies often exceeds six months if several transactions have to be coordinated.
What is a simplified merger?
The simplified merger applies where a company absorbs a subsidiary in which it holds 100% of the shares, or where one company is absorbed by another that holds 100% of its shares. Several steps are lightened: no exchange of shares, no merger auditor's report, no meeting of the absorbed company. Formal traceability remains essential. The simplified regime is widely used for intra-group restructurings to reduce cost and timetable.
Can a demerger be carried out without creating a new company?
Yes. A demerger may be carried out for the benefit of existing companies (demerger in favour of pre-existing receiving companies). It may also be carried out for the benefit of a new company created for the occasion. The allocation of assets and liabilities among the beneficiaries is set out in the demerger agreement, with a special mention for items whose allocation is unclear. The firm systematically secures this allocation to avoid claims after the transaction.
What happens to pending court proceedings when a merger takes place?
The absorbing company succeeds the absorbed company in the proceedings, by the effect of universal transfer of assets and liabilities. The Court of Cassation (Cass. com., 18 September 2024, No. 23-13.453, published in the Bulletin) specifies that the other party must nonetheless direct its claims against the absorbing company, and no longer against the absorbed company that has disappeared. Procedural vigilance is therefore essential to avoid an inadmissibility objection after the merger.
How much does legal assistance with a merger cost?
For a simplified intra-group merger (100% subsidiary absorbed by its parent), fees are generally between €5,000 and €9,000 incl. VAT, timetable included. For a merger between two independent companies with a merger auditor's report and negotiation of the exchange ratio, the range rises to €12,000 - €25,000 incl. VAT. For a complex demerger or a structuring partial transfer of assets, the range exceeds €25,000 incl. VAT. The firm proposes an overall fixed fee after reviewing the file, with no surprise hourly billing.
Which court has jurisdiction over a merger dispute?
Disputes between shareholders and those relating to the running of the company fall within the jurisdiction of the commercial court (tribunal de commerce) of the registered office, that is, the Paris economic activities court (tribunal des activités économiques, the name given on an experimental basis since 1 January 2025 to the Paris commercial court) for a company registered in the capital. The action for nullity of the merger is subject to the limitation period of Article L. 236-2-1 of the Commercial Code. Challenges relating to the exchange ratio or to the merger auditor's liability follow the ordinary rules. The firm regularly pleads before the Paris economic activities court.
Sources and related pages
Official texts and related pages
The sources for this page and the firm's related areas of practice.
Further reading
Page updated on 11 June 2026.
Let's discuss your restructuring project.
Intra-group merger, demerger or partial transfer of assets: send the articles of association, the accounts and the group structure chart. The firm replies within 24 business hours with a first outline of the structure.
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