Management, cultural factors, following goals, choosing the right time... are factors that businesses need to pay attention to when implementing M&A, according to the practical experience shared by speakers at the 2nd discussion session of the Vietnam Enterprise Mergers and Acquisitions (M&A) Forum 2023 held on the afternoon of November 28.
Cultural harmony
That is the experience shared by Mr. Dang Van Thanh - Chairman of the Board of Directors. TTC Group. He said that when acquiring (M&A) another business, it is necessary to harmonize the corporate culture to avoid falling into a difficult situation.
“Regarding the labor issue, after receiving, we will have a team of experienced 'framework staff' from TTC come down to retrain the workers, and at the same time evaluate, classify, rank, assign additional tasks or reduce work... to create all conditions for workers in the new unit to integrate into TTC in the best way,” Mr. Thanh was quoted as saying.
“In fact, no one understands regional culture better than the locals, so we are very flexible and experienced when using staff from old units, to help them best integrate into the Group's culture.”
Mr. Nguyen Van Thien, Chairman of the Board of Directors of Binh Duong Water and Environment Corporation (Biwase, HOSE: BWE) also shared the same opinion. “Governance needs to be improved. Human resources will show signs of decline before the transfer, if it is too comprehensive, it will not create joy for employees. So when doing M&A, if we change the service work, improve their jobs, it will be an indescribable joy, they will devote themselves. I even have to review the salary and income, if it is too low, then adjust it. That will improve life, improve labor productivity”.
Prepare good strategy, know how to choose the right time
Speaker Luu Thi Thanh Mau, CEO of Phuc Khang Investment and Construction JSC, said that the important thing is preparation. If the M&A strategy is well prepared, the enterprise will know what to expect, and at the same time have more choices and responsibilities to supplement resources. If the choice is good and the unit can resonate and create value for society, then it is a responsible choice.
“Consider a partner as a marriage. Choose well, prepare well, we will have happiness,” Ms. Mau commented.
Mr. Dang Van Thanh also mentioned a factor of timing. It is necessary to know when to take over, which location, which market must be considered before deciding to carry out M&A.
Set the right goals, aim for prosperity
Speaker Vu Minh Tien, Vice Chairman of the Board of Directors of VIAD Group, believes that in order for M&A to be successful, it is necessary to determine the right goals, while affirming that "prosperity" is the common goal of all M&A deals.
“Prosperity is not only financial, but also long-term brand value, developing corporate culture, which is the goal that M&A businesses must set from the beginning” – quoted by Mr. Tien.
Two other factors pointed out by Mr. Tien are technology and finance. After the 4.0 technology era, any enterprise that can master technology will have an advantage.
“In addition, there is the issue of trust. The first strength is trust. Vietnamese enterprises must have faith in their internal capacity and competitiveness, while foreign investors need to believe in stability, market potential, and trust each other.”
Transparent
This is the opinion of speaker Truong An Duong, Managing Director of the Northern Region and Residential Real Estate Division of Frasers Property Vietnam. He said that in an M&A deal, price is the first factor, which needs to be realistic.
Second, and more importantly, is the transparency of the parties, and understanding during the negotiation process.
Third, after signing, the parties must make efforts to complete the time issue.
And finally, when M&A is done, both sides must continue to be transparent and work to build trust.
Source: Vietstock
