Tips and tricks to maximise M&A prospects

Banking expert Can Van Luc stressed that correct evaluation is vital to deal success, which helps provide better documentation for decision making. Before merging with MHB, BIDV had hired an audit firm to carefully evaluate its partner and sought appropriate legal advice. The management boards of the acquired and acquiring company should reach a clear understanding and cooperate fully during the period of transition.

Echoing this view, director and general manager of overseas business at Credit Saison Katsumi Mizuno shared his best practices on acquiring HDBank, “We spent one and a half year learning about each other before closing the deal. We discussed the business plan, drew up product development strategies and found ways to rearrange human resources. This period is crucial to successful integration, which helps ensure the firm’s growth in the future.”

Stephane Gripon, CEO of Mondelez Kinh Do said that, “the success or failure of an acquisition deal lies in the nuts and bolts of common values. Like Kinh Do, Mondelez is a leader on the snack market with fantastic iconic brands. Therefore, both sides believed that the combination of the local with the international brand would bring the company to further success.”

“With King Do’s partnership, Mondelez is getting access to the fantastic portfolio of the local brand with a strong distribution system and two manufacturing sites. From our side, we bring not only the international portfolio, but also the global capabilities and R&D in quality. The deal really mixes the best local and international enterprises together,” he added.

Meanwhile, Nam Long Investment Corporation has successfully raised funds from many reputable international investors, such as Kepple Land, Hankyu Nissin Realty and Nishi Nippon Railroad in their business expansion. Working with international investors since 2008, Nam Long CEO Chu Chee Kwang generally summarised what foreign investors would expect from their domestic counterparts.

“M&A activities in the real estate sector are just an alternative business strategy for international investors to be involved in business in Vietnam. To make the right decisions, foreign investors will look at the long term growth potential of a company, its marketability and viability, its reputation, historical success record and future plans. They also consider the chairman and its shareholders’ background, attitude, culture, management style and openness to improvement and changes,” he added.

He also noted that previously international investors preferred to set up local companies and buy land for development purposes, but soon discovered that it was too difficult, time-consuming and that they lacked knowledge about Vietnamese business practices and the regulatory environment to be successful. Therefore, M&A strategies can help investors to have a firmer control of the company while retaining essential local know-how and to accelerate the property development process.

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