BUYING A BUSINESS | LAW FIRM MAJOR IN DEAL ADVISORY IN VIETNAM
Business acquisition is no longer a strange thing for investors and business owners today. The business acquisition brings certain benefits to the buyer and their business strategy. If you are considering buying a business, Doanh Tri’s team of specialists helps you ask and answer the right questions throughout the acquisition life cycle, from developing the optimal acquisition strategy right through to delivering the expected value.
I. Legal basis
- Law on Enterprise 2020
II. Deal Advisory
As you execute your company’s growth strategy through acquisitions you will reach a number of decision points. We help buyers confidently navigate the complexities of buying a business, unlocking value at every stage. We think like an investor to help you:
- Develop an effective acquisition strategy
- Identify and prioritize potential acquisitions
- Conduct accurate business valuations
- Develop and execute implementable solutions
- Deliver real results when you buy a business.
Our team help buyers with key questions through the stages of planning and executing an acquisition as following:
Identify and prioritize conversion goals based on their availability, fit with your trading strategy, and ownership structure. You are on the way to a successful transaction when you can effectively manage your stakeholders and start liaising with suppliers.
How to maximize shareholder value and returns?
Position yourself to gain maximum value by developing a deal strategy aligned with your corporate vision and a clear capital allocation plan.
Assess the value of the target through a holistic review of the business and its value drivers.
Negotiate and execute the deal with confidence by addressing issues that arise during the investigation –such as risks priced in and protection sought in sales purchase agreements (SPA) – and assessing future upsides.
III. Business buying process
Step 1: Set a business strategy and find the target company
Every business when conducting an acquisition deal is to fulfill a certain purpose such as expanding business scope, expanding market share in the market, etc. Therefore, for its deal to proceed with the right purpose. The enterprise must map out a specific strategy and roadmap to determine its goals. After that, businesses can search and select the target company to purchase in accordance with their business orientation. The target company should have certain advantages so that the buyer can take advantage and continue to exploit such as having a stable source of customers, partners, market share, and position in the market or advantages in human resources, land, infrastructure, facilities, etc.
Step 2: Preliminary planning and negotiation
Once the objective has been identified and a company can be found that can meet the set criteria, the Buyer can exchange more information, negotiate with the seller, plan and make an offer. with the seller by drafting a letter of intent (Letter of Intent) to outline some basic terms such as price, rights, and obligations of both parties, .. before negotiating and finalizing all procedures remaining custom.
Step 3: Due diligence report
When conducting business due diligence, the Buyer will have access to many internal documents of the Seller, therefore, before conducting the appraisal, the two parties will sign a non-disclosure agreement. to ensure the legitimate interests and internal data of the Seller's business in case the Buyer does not intend to buy, to avoid the Buyer taking advantage of the Seller's internal data through the appraisal to defraud the Buyer.
Step 4: Valuation
In fact, price negotiation is a stage that often has many conflicts when the Seller tends to offer too high a price and the Buyer offers to buy at a low price. Therefore, the parties must hire a professional valuation organization to value the company because the value of a company depends not only on the available capital but the valuation of the company can also be based on factors such as business secrets, technology, ownership of intangible assets, etc.
Step 5: Negotiate and sign a contract.
The above information is about the ‘Buying A Business - Law Firm Major In Deal Advisory In Vietnam.' For more information and advice on this issue, please contact Doanh Tri Law Firm directly via:
Hotline: (+84) 911.233.955 - (024) 6293 8326
Doanh Tri Law Firm is pleased to accompany our Customers!
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