Unveiling Nature Of M&A Deals

Despite the Covid-19 pandemic, recently M&A transactions in Vietnam have shown robust performance both in terms of transaction volume and value, especially inbound transaction. With more than 25 years of in-depth experience in the fields of investment management, M&A advisory, market entry consulting for foreign investors to penetrate and expand business in Vietnam, Mr. Le Xuan Dong, Managing Director and Head of Market Research and Consulting Division of FiinGroup, shared his insights in an interview with Vietnam Financial Investment to unveil the nature of M&A deals in Vietnam.

According to Mr.Dong, the driving factors behind the growth of M&A transactions in Vietnam include: (i) Vietnam’s macroeconomic stability amid complicated COVID-19 context; (ii) Compelling domestic demand with large and young population of nearly 100 million people, and increasing disposable income and consumption demand across all sectors; (iii) More open economy with around 15 bilateral and multilateral free trade agreements (FTAs) signed recently; supporting to attract more foreign businesses to establish their manufacturing facilities in Vietnam and export globally, capitalizing on the tax incentives of the FTAs.  

Mr. Dong believes that with the above favorable factors, M&A transaction continue to be one of the optimal solutions for foreign investors to penetrate and/or expand business activities in Vietnam.

In M&A transactions, commerical due diligence is critical in supporting the potential buyers to get in-depth understanding of market growth potential, competitive landscaping amongst key players, target company’s market positioning and independent assessment of key input assumptions in terms of sales volume and revenue growth etc., as well as supporting enterprise valuation and negotiation between two parties. In Vietnam, Market Research and Consulting Division (“FiinResearch”) of FiinGroup is a leading consulting team that has actively provided commercial due diligence services in many M&A transactions in recent years.

Please find the full interview here.