In the context of economic integration and increasingly fierce competition, mergers and acquisitions (M&A) have become an important tool for businesses to expand their scale, restructure operations, and attract investment capital. Particularly in Hai Phong – a major industrial, port, and logistics center in Northern Vietnam – M&A transactions are becoming increasingly active across various sectors such as manufacturing, supporting industries, logistics, trade, and services.
However, M&A is not limited to a single form. In fact, businesses and investors can choose from various transaction structures depending on investment objectives, business size, and relevant legal factors. Understanding the common forms of M&A will help businesses and investors select the transaction option that best suits their development strategy.
With experience in corporate finance advisory and M&A advisory, Vinasc Group regularly assists businesses and investors in choosing appropriate transaction structures when conducting M&A deals in Hai Phong.
1. Acquiring a business through equity transfer.
Equity transfer is the most common form of M&A in the market today. In this form, investors acquire a portion or all of the capital contributions or shares of the current owners in the business.
After the transaction is completed, the investor will become a new shareholder or member of the business and will have the right to participate in the management and operation of the business in proportion to their capital ownership.
A key feature of this model is that the target business retains its current legal entity , only changing its ownership structure. This allows the business to continue maintaining contracts, licenses, and business relationships with customers without interruption.
For businesses in Hai Phong, the capital transfer method is commonly applied in mergers and acquisitions of manufacturing, trading, or logistics companies.
2. Business mergers
A merger is a form of M&A in which one company acquires one or more other companies. After the merger, the merged company ceases to exist legally, while the acquiring company takes over all of its assets, rights, and obligations.
Mergers are a common form of business used when companies want to consolidate resources to create a larger and more competitive enterprise in the market .
In the context of Hai Phong’s strong industrial and logistics development, some businesses in the same sector may choose to merge in order to optimize their supply chains, reduce operating costs, and improve production efficiency.
3. Acquiring the company’s assets.
In some cases, investors do not want to buy the entire business but only want to acquire a specific portion of the target company’s assets.
The assets acquired may include:
- Factory and machinery/equipment
- Land use rights
- Trademark or intellectual property
- Distribution system or customers
Asset acquisition is often used when the target business is experiencing financial difficulties or when investors are only interested in a portion of the business’s operations.
In Hai Phong, this method is sometimes applied in transactions related to manufacturing plants or logistics projects.
4. Joint ventures and investment partnerships
A joint venture is a form of cooperation between two or more businesses to jointly invest in and develop a project or business activity.
In this model, the parties will contribute capital to establish a new business and jointly participate in managing its operations.
Joint ventures are a common form of business formation when companies want to:
- Combining technology and management expertise
- Sharing investment risks
- Leverage the strengths of each party.
In Hai Phong, many foreign investors choose to form joint ventures with domestic businesses to develop manufacturing or logistics projects.
5. Strategic investment through share acquisition.
Strategic investment is a form of investment where an investor purchases a portion of a company’s shares in order to become a strategic shareholder.
Unlike acquiring an entire business, strategic investors typically hold only a certain percentage of shares but play a crucial role in supporting the business’s growth.
Strategic investors can support businesses in areas such as:
- Technology and management
- Market development
- Raising capital
- Business administration
For many businesses in Hai Phong, finding strategic investors is an effective solution to expand their scale and enhance their competitiveness.
6. Frequently Asked Questions about M&A Forms in Hai Phong
Which type of M&A should businesses choose?
The choice of M&A method depends on many factors such as investment objectives, business size, and current ownership structure. Each transaction method has its own advantages and disadvantages.
What type of M&A is most common in Hai Phong?
Capital transfers and share purchases are the two most common forms because the legal procedures are relatively simple and the business can continue operating as its current legal entity.
What type of M&A do foreign investors typically choose?
Foreign investors often choose to acquire shares or form joint ventures with domestic businesses to gain easier access to the market.
7. Vinasc Group’s M&A advisory services in Hai Phong
With years of experience in corporate finance and M&A consulting, Vinasc Group provides consulting services to help businesses and investors choose M&A transaction structures that suit their development strategies .
Vinasc Group’s services include:
- Analyzing the structure of M&A transactions.
- Consulting on selecting the appropriate M&A model.
- Target business valuation
- Business valuation
- Assisting in negotiations and closing deals.
Through its in-depth consulting services, Vinasc Group helps businesses in Hai Phong conduct M&A transactions transparently, efficiently, and in accordance with legal regulations , while also making the most of investment opportunities in their business development.