The Vietnamese government has streamlined the merger and acquisition (M&A) process to encourage investment in new sectors of the economy. 

Mergers and acquisitions (M&A) are perhaps one of the most complex, information-dense and unpredictable processes within the finance industry. M&A deals require an incredible amount of planning, organization, communication and insight. Therefore, it is very important that deal teams have the proper technology and tools to aid in the process.

The preparation stage for an M&A transaction plays a decisive role in the success/failure of the M&A transaction:

For the seller, careful planning and preparation is the key to the success of the transaction; For the buyer, the process of  understanding and evaluating the acquirer determines whether the parties have reached the official transaction stage (to make a purchase decision, usually the buyer must find out and overall assessment of the target audience).

In the investment preparation stage, the activities of searching, approaching and evaluating the target audience. The access project of pre M&A can be through many channels such as: Marketing of the seller, self-searching in the information network of the buyer, or through consulting units, brokerage organizations in the same investment field business consultants or specialized M&A consulting units;

At this step, the reach depends on the seller with preliminary assessment of the following factors, before deciding to proceed to the next step of the acquisition roadmap:

• The target audience must have activities in the field consistent with the development orientation of the Buyer;
• The target audience usually has an established source of customers and partners or has a certain market share in the market that the Seller can continue to exploit in accordance with the Buyer when starting market acquisition strategy;
• The target audience usually has a long-term or medium-term investment scale that can be leveraged as a result of technology investment, management experience, and skilled labor;
• The target audience has a certain position in the market, helping the buyer to reduce short-term costs and increase market share, take advantage of the ability to cross-sell services or take advantage of product and business knowledge. market experience to further consolidate and create new business investment opportunities;
• The target audience has the advantage of available land, infrastructure, and facilities that can be utilized to minimize initial investment costs.

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Each business transaction has different regulations as well as not yet compilation of standard terms and conditions. Apolo Lawyers would consider the purpose of the contract, transaction type, and significance of the deal, industry, Vietnam legal requirements and expectation of the client to prepare a legally enforceable contract for the client, to avoid misunderstanding and protect the client against legal disputes.We offer a comprehensive set of M&A legal services, some of which are set out below.

• Tailored deal structuring with a focus on long-term goals
• Strategic reviews to identify divestment of non-core assets or reorganisation of assets
• Foreign direct investment analysis
• Identifying regulatory pain points
• Early-stage Stop/Go analysis, often alongside specialists on Tax

For further information, contact us:

Apolo Lawyers - Solicitors & Litigators

Address: 10th Floor, PaxSky Building, No. 51 Nguyen Cu Trinh Street, District 1, Ho Chi Minh City

Binh Thanh Branch        

Address: 9th/F, Tower K&M Building, 33 Ung Van Khiem St., Binh Thanh Dist., HCM City

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Tel: (028) 66.701.709 / (028) 35.059.349

Mobile 1/ Whatsapp 1: 0939.486.086 / Mobile 2/ Whatsapp 2: 0908.043.086

Email: contact@apolo.com.vn

Website: apololawyers.com

APOLO LAWYERS