Thị trường mua bán, sáp nhập doanh nghiệp - triển vọng nào cho 2024? - Thế Anh, KPMG Vietnam

Summary of "Thị trường mua bán, sáp nhập doanh nghiệp - triển vọng nào cho 2024? - Thế Anh, KPMG Vietnam"

Short Summary:

This episode of Vietnam Innovators discusses the M&A (Mergers and Acquisitions) market in Vietnam, focusing on its current state and future prospects for 2024. The conversation highlights the increasing popularity of M&A as a growth strategy for Vietnamese companies, particularly in sectors like healthcare and education. The episode also explores the challenges faced by Vietnamese companies seeking funding and investment, including the need for improved corporate governance and readiness for institutional investors. The speaker, a partner at KPMG Vietnam, emphasizes the importance of M&A advisors in bridging the gap between companies and investors, facilitating successful deals and post-merger integration.

Detailed Summary:

Section 1: Introduction and Macroeconomic Landscape

The episode begins with an introduction to the M&A market in Vietnam, noting the challenging macroeconomic conditions and the increasing interest in M&A as a way for companies to grow and invest.
The speaker, Tang, introduces himself as a partner at KPMG Vietnam, specializing in corporate finance and M&A advisory. He highlights KPMG's expertise in accounting, tax, legal, and finance, and their focus on working with local Vietnamese companies.
Tang mentions the growing trend of Vietnamese companies acquiring other Vietnamese companies, driven by the desire for organic growth and access to new teams, products, and capabilities.

Section 2: The Shift Towards M&A

The speaker acknowledges the traditional mindset of Vietnamese companies, which often favors building their own businesses rather than acquiring existing ones.
He attributes the shift towards M&A to the success of pioneering companies like Masan Group and Vin Group, who have demonstrated the effectiveness of acquisitions as a growth strategy.
Tang emphasizes the increasing acceptance of M&A as a viable option for companies of all sizes, including startups, who may find it more efficient to acquire specific assets, teams, or products rather than building them from scratch.

Section 3: Examples of M&A Activity

The speaker provides an example of a recent M&A deal involving Taco, a company known for its outdoor business, acquiring iMat, a Korean company operating in the commercial land bank sector.
This acquisition allowed Taco to expand its business beyond its core area and leverage its existing land bank.
Tang also mentions the active M&A activity in the healthcare and education sectors, driven by the resilient demand for these services and the potential for private companies to gain market share from the public sector.

Section 4: Funding Options and Readiness for M&A

The speaker discusses the various funding options available to Vietnamese businesses, including bank loans, family and friends investments, IPOs, and private equity/venture capital.
He highlights the preference for private markets over IPOs due to the greater availability of funding and the constraints of the Vietnamese IPO market.
Tang emphasizes the importance of "readiness" for companies seeking funding or investment, particularly in terms of corporate governance, financial reporting, and transparency.

Section 5: The Role of M&A Advisors

The speaker explains the role of M&A advisors in facilitating deals and ensuring successful post-merger integration.
He describes the process of identifying potential buyers, setting expectations, and negotiating valuations.
Tang highlights the importance of advisors in bridging the gap between companies and investors, particularly in the context of Vietnamese companies that may lack experience with institutional investors.

Section 6: Challenges and Success Factors in M&A

The speaker discusses the challenges faced by Vietnamese companies during M&A, including the need for improved corporate governance, transparency, and readiness for institutional investors.
He emphasizes the importance of post-merger integration, highlighting the need for clear communication, trust, and a shared vision between the acquiring and acquired companies.
Tang provides examples of successful post-merger integration strategies, including the establishment of dedicated integration teams and maintaining open dialogue between founders and management teams.

Section 7: Trends and Future Outlook

The speaker acknowledges the decline in M&A activity in recent years, attributed to global macroeconomic conditions and a shift in investor preferences towards profitability over growth.
He predicts a potential increase in M&A activity in 2024, driven by the continued availability of dry powder among private equity and venture capital firms.
Tang suggests that companies seeking funding should focus on demonstrating a clear path to profitability and financial resilience, as investors are now prioritizing sustainable business models.

Section 8: Advice for Vietnamese Entrepreneurs

The speaker encourages Vietnamese entrepreneurs to consider M&A as a growth strategy, particularly in the current environment where assets may be more affordable than before.
He suggests exploring mergers as a way to cut costs and improve efficiency, highlighting the potential for mutually beneficial partnerships.
Tang emphasizes the importance of identifying the right target companies and offering solutions that benefit both parties.

Section 9: Future Insights

The speaker expresses his interest in hearing from experts in the healthcare and education sectors, given the significant M&A activity in these industries.
He believes that insights from these sectors would provide valuable information about current trends and future prospects for M&A in Vietnam.