The Largest Merger Between Non-profit Entities

Our firm handled the merger between the Association for the Wellbeing of Israel’s Soldiers, one of the largest non-profit organizations in Israel, and its fully owned subsidiary – a public-benefit company which manages all canteens and sales' points in military bases state-wide. This was the first merger in Israel in which a public-benefit company was merged into a non-profit organization. The difference in the corporate types and structures of the two entities required our detailed attention with respect to numerous issues; both from an internal corporate perspective, as well as in connection with the requirements of various governmental agencies. Our firm handled the merger across all of its stages and facets: preparing the merger agreement; carrying out all necessary actions for the merger to take place; obtaining all of the necessary internal approvals within the entities; dealing with various third parties, including donors and creditors; cooperating with the accountants of the two entities, in order to manage the financial aspects of the merger; handling the procedural aspects before the Registrar of Associations and the Registrar of Endowments; and, finally, having the merger approved by the District Court.