SELLING A BUSINESS | LAW FIRM MAJOR IN DEAL ADVISORY IN VIETNAM
In a competitive market economy, besides efficient companies, there are many loss-making businesses and the solution for these businesses is to sell their companies to larger companies. The acquired company will no longer exist, the company conducting the acquisition will take over the entire business of the other company. This activity aims to increase profits, expand business activities of enterprises and increase revenue for buyers. If you are considering selling a business, Doanh Tri’s team of specialists will provide you with useful advice for an exit strategy that helps to maximize value to enhancing your retention.
I. Legal basis
- Law on Enterprise 2020
II. Deal Advisory
When it comes to selling a business, a successful strategy requires active portfolio management and a well-planned divestment process. As an objective third-party advisor, we can help you:
- Analyze your business portfolio to maximize shareholder value
- Assess exit strategies
- Prepare the business for exit
- Execute an efficient divestment process
- Mitigate transaction risks
- Enhance your retained business.
Our team help Sellers with key questions through the stages of planning and executing an acquisition as following:
Understand and develop a powerful and effective story for buyers based on qualitative and quantitative benchmarking of the asset and through upside improvement potential for revenue and costs. Assist you in selecting a valuation approach, targeting and screening the right buyers, contacting them on your behalf, aligning your valuation with buyer’s expectations, and help ensure you have the information needed to satisfy potential bidders and support the sale process.
How to maximize shareholder value?
Analyze the current and potential value of your portfolio and develop divestiture approaches with and assessments of internal and external business contexts in addition to potential scenarios that can support your exit options.
Preparation for exit
Ensure investors have the information they need and minimize value leakage during separation. Analyze the best deal structure and outlining the required steps that help bidders understand potential cost and revenue synergies.
Manage the deal strategically by planning the separation thoroughly and articulate information required by bidders as well as relevant regulatory documentation. Assess the offered prices and support to secure favorable deal value.
Close the business
Stay in control of the closing process by preparing a checklist of actions for closing, identifying regulatory requirements, firming up your separation plans, and verifying what support the buyer needs.
Result of the deal with values created
Close the deal efficiently to achieve real results by assisting to prepare closing documents, helping the investor exit the transition service agreements (TSAs), and implementing the stranded cost mitigation plan in the retained business.
III. Business selling process
Step 1: Setting up Potential Exit Strategies
When considering the sale of a business, a business owner has a wide variety of transaction options to sell the business. These options should be understood by the owners and board of directors, which could affect the price paid by the buyer. However, in the lower middle market, the owner’s goals often drive the type of buyer that the company desires. Types of buyers generally break down into employee buyers, financial buyers, and strategic buyers.
Step 2: Determine a Range of Value
Determining a reasonable valuation range is a critical step in the sale process. Owners should have a realistic valuation so that the buyer and seller have similar expectations about business value. Deals can crash when sellers and buyers have completely different expectations about business value, and the parties cannot get to a mutually agreed purchase price. While the M&A advisor is to help the parties come to terms, the most experienced advisor may not be able to bridge a large gap.
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: Potential Buyers
Many potential buyers that express interest in a business will not be qualified to purchase the company. Our teams will be able to give advice on this issue.
Step 5: Negotiate and sign a contract.
The above information is about the ‘Selling 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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