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Legal advice on Mergers and Acquisitions (M&A) in Vietnam

In the fast-moving world, M&A transactions are strongly developing. Concurrently, M&A transactions are more and more complex. So, it is not easy for any investors to implement M&A transactions. The demand for legal advisors who understands the broad impact of all aspects of one transaction is increasing. Realizing that, Apolo Lawyers introduces the service “Legal advice on Mergers and Acquisitions (M&A) in Vietnam” to our clients. Contact Apolo Lawyers (Hotline: (+84) 903.419.479) to be supported about Mergers and Acquisitions (M&A) quickly and efficiently.

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Mastering the basis of M&A is one of the most important keys to helping us open the door to success when conducting M&A transactions. So, what is M&A? How do M&A transactions affect business? Let’s find the answers with us.

1. What is an M&A transaction?

M&A is an acronym for two words Mergers and Acquisitions. The essence of M&A transaction is the act of gaining control of a business through mergers or acquisitions. In there:

Mergers occur when two (or more) companies agree to go on to form an entirely new company without maintaining ownership and operations of the component companies. The securities of the component companies will be deleted and the company after the merger will issue new securities. Concurrently, the assets and liabilities will be taken over by the new company.

Acquisitions refer to a business that seeks to acquire control over another business by acquiring all or part of the total shares or assets of the business. Unlike mergers, acquisitions do not erase the old securities of the company and do not issue new securities. Assets and liabilities will be settled at the discretion of the acquiring company.

2. The advantages of M&A

In recent years, the development of M&A has brought a great profit for the economy in general and business in particular because of the great advantages of M&A activities.  

In general, when conducting an M&A transaction, both buyers and sellers gain different profits.

For the buyer, M&A is an effective form of excess capital investment, concurrently businesses can control this activity. M&A helps the buyer reduce a lot of costs by taking advantage of available resources such as machinery, human resources, market share, or even distribution channels of the target company. At the same time, M&A also helps to increase the influence of enterprises by expanding both geographical markets and product markets. And of course, when doing M&A, the parent company will have one less competitor as the target company. All of the above benefits will help the parent company increase revenue and grow stronger in the market.

For the seller, M&A is the fastest way to get profits from the company, and it is also a quick procedure to terminate the operation of the company. At the same time, M&A also helps the seller to maximize profits from the valuation of all tangible and intangible assets of the company. For companies that still want to grow, this is also a suitable tool to grow their business from the capital of the acquired/consolidated company.

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3. The provisions of the law about the M&A

M&A brings many benefits to both businesses and the economy, but the legal framework governing M&A activities is quite complicated. Currently, regulations on M&A are located separately in different documents such as Competition Law, Enterprise Law, Investment Law, Securities Law, etc.

Each document, M&A is regulated in the form of a different activity, for example, the Competition Law stipulates that M&A is a form of economic concentration, while the Enterprise Law considers M&A to be a form of business reorganization, and M&A is a form of direct investment through the purchase and sale of capital/shares according to investment law.

>>> Read more: Legal advice on tranfer of investment project in Vietnam

>>> Read more: Legal Due Diligence consulting service

M&A activities need a solid and experienced legal team to advise businesses because M&A is regulated in many different legal documents. Recognizing the needs of customers for consulting on business mergers and acquisitions, Apolo Lawyers provides consulting services on business mergers and acquisitions. Apolo Lawyers will perform the following tasks for clients:

  • Collect information, verify the profile of the target company
  • Assess risk and plan to deal with risk
  • Completing legal documents for the M&A process
  • Consulting and completing business restructuring procedures after completing M&A.

Apolo Lawyers is proud to be a law firm with many years of experience in business consulting that will support clients in the M&A process. In case you need advice related to M&A, please contact us via email at contact@apolo.com.vn or Hotline - 0903 419 479 for the best advice and support.

For further information, please contact us: Apolo Lawyers

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