Basic Legal Steps in M&A Transactions in Vietnam
M&A activities in Vietnam are not adjusted by a single law. Instead, they are integrated from many laws such as the 2020 Business Law, the 2020 Investment Law, the 2018 Competition Law, and the Securities Law 2019. Besides, the regulations related to land, labor, taxes and foreign exchange also strongly affect the transaction process. In the context of the increasingly complex market and the higher the requirements of compliance with the law, each M&A stage needs to be designed and implemented closely to minimize legal risks. market, tEnter the industry, diversify products... and evaluate legal and commercial risks.
Step 2: Business appraisal (Due Diligence)
- Legal appraisal: check legal status, rights property ownership, licenses, contracts, disputes, labor compliance, taxes...
- Financial, personnel and operational appraisal: evaluate debt, cash flow, labor contracts, organizational structure to estimate real value and potential risks.
Step 3: Transaction structure & negotiation
- Choose the appropriate legal structure: divide the transfer shares, buying assets or transferring capital... to optimizeChemistry tax expenses and compliance with industry regulations. Including important terms such as price, payment method, commitment & security (R&W), disbursement conditions, dispute resolution mechanisms. Painting, securities, ...
Step 5: Execute and complete transactions
- Sign contracts and transfer: Execute transfer of shares, assets, or contributed capital.P; ĐT, Tax Agency and related agencies. Corporate culture: Ensuring stable employees, harmonious culture, maintaining business performance. Feeling, easy to affect the progress of the deal.
- must have specialized supportcooperation, from lawyers, M&A consultants, accountants... to ensure legal accuracy and optimize strategy.
- Automating the evaluation & appraisal process helps save time and minimize post-transaction risks.
M&A transactions in Vietnam are a complex process and require meticulous legality. From strategic planning, thorough appraisal, to negotiation, permitting, implementation and post-merger, each stage is a key factor in determining the success of the deal. Compliance and proactive step by step will help businesses optimize value, minimize risks and create a solid foundation for post-merger development.
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