Vietnam’s dynamic economy has witnessed a surge in mergers and acquisitions (M&A) activity. However, beneath this vibrancy lies an intriguing challenge: The delicate equilibrium between M&A demand and supply.
- M&A in Vietnam: High foreign demand and supply-side challenges
Over the past few decades, Vietnam has emerged as a dynamic and attractive destination for mergers and acquisitions (M&A). The country’s robust economic growth, favorable demographics, and market liberalization have fueled a surge in M&A activities. As Vietnam’s economy rebounds post-pandemic, M&A transactions are expected to play a pivotal role in shaping the business landscape.
During the early days, M&A activity was relatively quiet, but from 2005 to 2013, the landscape changed dramatically. Larger deals became common, and domestic enterprises actively pursued M&A strategies. Foreign investors recognize Vietnam’s growth potential and seek to acquire local companies for market access and expansion.
However, despite high demand, the supply of quality M&A targets remains limited. According to the data collected by INMERGERS’ MMatch Platform (a pioneering M&A platform in Vietnam), 83% of their foreign investors express demands for strategic business M&A in Vietnam while there are only 39% of available opportunities from the seller side.
Therefore, addressing supply-side challenges will be crucial for sustained growth and successful strategic business M&A ventures.
- Obstacles that cause M&A deals in Vietnam to be unsuccessful or have a low success rate
In Vietnam’s dynamic business environment, the behavior of local companies during mergers and acquisitions (M&A) plays a crucial role. Unfortunately, many Vietnamese firms lack steadfast determination. They frequently deviate from their initial cooperative intentions, altering decisions midstream. These shifts erode their credibility in the eyes of investors, who become increasingly cautious during the input selection process.
Investors grapple with the challenge of allocating precious capital wisely. Meanwhile, the investor landscape itself is evolving. Numerous Vietnamese companies express eagerness to attract investors, only to later reverse their stance. This flip-flopping behaviour forces investors to be more discerning, setting stringent criteria to avoid wasting time with companies lacking clear resolve. As Vietnam continues to be an attractive investment destination, bridging this gap between intention and action becomes critical for successful M&A ventures.
On the investor’s side, they also face a variety of challenges when investing in Vietnam such as struggling to access transparent financial information after
finding a target business or wasting too much time on paperwork and legal procedures, etc.
There’s obviously a need for some sort of professional intermediary who deeply understands the market to act between local businesses and foreign investors to tackle the problem.
- INMERGERS’ M&A Advisory Services: Unlocking Strategic Opportunities
To help Vietnamese companies and foreign investors overcome these obstacles while doing M&A, INMERGERS – the pioneering M&A enterprise in Vietnam offers comprehensive M&A advisory services tailored to meet the diverse needs of companies.
3.1. Expanding Investment Opportunities With Reliable Data Being a pioneering M&A platform in Vietnam, there are hundreds of high-quality teasers sent to INMERGERS daily, spanning various industries. This allows investors, especially foreign investors, to quickly and easily select target companies that suit their investment preferences. INMERGERS’ I.M (Information Memorandum) reports are built on actual company data, providing all the necessary information for an initial evaluation (including market research, company background, financial situation, SWOT analysis, etc.). Investors no longer need to worry about unclear financial information. Since the data is neither overstated nor disconnected from the company’s reality, the documents provided by INMERGERS are extremely reliable.
3.2. Optimizing Investment Decisions
INMERGERS will analyze the investment needs and preferences of investors and provide an essential market overview. Conducting market research based on investors’ requirements, INMERGERS proposes the most suitable investment opportunities. This helps investors save time and effort when they have yet to become familiar with the M&A market in Vietnam.
With an efficient pre-M&A consulting process and a high-quality advisory team, INMERGERS has been trusted by many partners. The company has been providing consulting services to numerous businesses across various fields, including logistics, oil and gas, IT, restaurants, and industrial kitchens (done consultations). Besides, there are currently deals in the advisory process in
sectors like manufacturing, digital marketing, fruit import/export, logistics, pharmaceuticals, fashion, and chemicals.
As one of the pioneering and leading companies in M&A, especially pre-M&A consulting, in Vietnam, INMERGERS hopes to assist businesses in making informed and confident decisions when doing M&A in order to gradually balance supply and demand in the M&A market and increase the success rate of M&A transactions in Vietnam.
For more information, you can contact the Inmerger platform, a platform about M&A Vietnam
INMERGERS JSC Headquarters:
3rd floor, 192 Thai Thinh, Lang Ha ward, Dong Da district, Hanoi, Vietnam
Hotline: (+84) 963 550 192 (Hanoi) – (+84) 971 017 016 (HCMC)
Website: http://inmergers.com/en
Email: advisorteam@inmergers.com
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Source: Vietnam Insider