Definition

M&A is an abbreviation for the phrase "mergers and acquisitions." M&A is the process of acquiring control of a company by merging with or acquiring all or a portion (number of shares) of other companies.

• Mergers are associations between companies of comparable size that result in the formation of a new legal entity. All of the assets, common interests, rights, and obligations of the business being merged or acquired will be transferred to the acquiring business.
• Acquisitions are a form in which a large business acquires smaller, weaker businesses while retaining its previous legal standing. The acquiring business acquires legal ownership over the acquired business.

 Benefits of mergers and acquisitions

• Expand market share, and increase business efficiency.
• Restructure the number of human resources more reasonably.
• Cut unnecessary costs.
• Utilize transferred technology.
• Save the cost of entering the market.

  Type of merger and acquisition

There are three types of mergers and acquisitions: horizontal, vertical, and combined.

• Horizontal M&A

Two companies in direct competition with identical product lines and markets. This type of merger is beneficial because it eliminates competition, thereby increasing market share, revenue, and profits.

• Vertical M&A

A vertical merger occurs when a clothing store and a textile factory merge because they share the same value chain but different production stages. Typically, this type of merger occurs to ensure a constant, uninterrupted supply.

• Congeneric mergers

A form of merger and acquisition to form corporations. This kind of merger gives companies the chance to move into other parts of their industry and gives them access to resources and markets that they didn't have before.

  Outstanding EBS in M&A

Inheriting the experience from senior leaders of EBS who are experts in financial investment and M&A, We have achieved success in numerous fields with a number of services, such as:

• Seeking opportunities for investment in Vietnam and ASEAN (mergers and acquisitions, strategic investments, joint ventures, capital raising, and so on);
• Financial restructuring (balancing administrative accounts with tax accounts, calculating capital needs, restructuring ownership of the group/parent-subsidiary, splitting/separating/consolidating the company, preparing for the financial goals to raise capital, collaborating with relevant state agencies, etc.);
• Investment consulting for foreign investors in Vietnam and co-investment participation;
• Promote regional trade by serving as a conduit between buyers and sellers from within and outside the region;
• Assisting organizations with mergers and acquisitions (M&A) (services to survey production and business activities, draft transaction documents, structure transactions, investor presentations, business valuation, transaction negotiation, transaction process coordination, etc.)