ABOUT USUnit 13 - ENM401 – Summer 2016

Lê Thị YếnLê Trường NamPhan Lạc HưngNguyễn Ngọc HưngTrần Nam TrungHồ Minh Tuấn

TAKEOVERS MERGERS

1 Background M&A in Viet Nam

2 Takeover, types and example

3 Merger, types, pros & cons and example

4 Why M&A deals fail?

TABLE OF CONTENT

M & A

Merger Acquisition

is raising investment in 2016,

after AEC is established, good and retail.

Thailand$5.2bn, Viet Nam, 2015

341M&A DEALS

Real Estate

69% Involve investment

from foreign

66%

GENERAL BACKGROUNDM&A VIET NAM

M&A DEALS

ACQUISITION

An acquisition is the purchase of all a portion of a corporate asset or target company

Definition

• Acquisition are paid in cash/ a combination of cash and the acquiring company’s stock/ debt• Acquisition are often done by another company in a similar line of

business/buy a direct competitor/ companies in an unrelated field.• Acquisition may be done by a financial company/ an individual

financier

Types of Acquisition

DEAR COMPANY C, CAN WE PLEASE TAKE OVER? CHECK

□YES OR □NO

Types of Acquisition

Friendly Hostile

The Board of Directors approves the purchase before it happens

The Board rejects the offer, but the buyer tries to purchase the company anyway by buying a controlling amount of stocks

approves rejects

Example of Acquisition

THAILAND’s CENTRAL Group takeovers Big C Vietnam from France’s

Casino GroupDeal: $1.1 billion

MERGER“We get talent and scale from merger”(Angela Braly)

Merger is the deal to unite two existing companies into one new company

Definition

Merger is the deal to unite two existing companies

into one new company

Definition

unite two

one

Merger is the deal to unite two existing companies

into one new company

Definition

unite two

one

Reach and expand new segment

Merger is the deal to unite two existing companies

into one new company

Definition

unite two

one

Reach and expand new segment

Gain market share

Types of Merger

MERGER

HorizontalSame industry

Market Extension

Same products, different markets

Product Extension

Add together products

Vertical A finished good

combine

ConglomerateNothing in common

Types of Merger

MERGER

HorizontalSame industry

Market Extension

Same products, different markets

Product Extension

Add together products

Vertical A finished good

combine

ConglomerateNothing in common

Types of Merger

MERGER

HorizontalSame industry

Market Extension

Same products, different markets

Product Extension

Add together products

Vertical A finished good

combine

ConglomerateNothing in common

Types of Merger

MERGER

HorizontalSame industry

Market Extension

Same products, different markets

Product Extension

Add together products

Vertical A finished good

combine

ConglomerateNothing in common

Types of Merger

MERGER

HorizontalSame industry

Market Extension

Same products, different markets

Product Extension

Add together products

Vertical A finished good

combine

ConglomerateNothing in common

Pros & Cons of Merger

Pros

• Expand the scale of company• Attract employees• Make company more valuable• Customer addition

Cons

• Conflict among big shareholders• Affect to the right of small shareholders• Cultural conflicts

Example of Merger

Merger:24/1/2001Split: 2011

WHY M&A FAIL?

Fail?

Why M&A deals fail?

Culture integration issue

Getting deal structure or price wrong

Not focusing enough on customer and sale

External factor

Limited or no involvement from the owners

Not communicating clearly

Fail?

Why M&A deals fail?

Culture integration issue

Getting deal structure or price wrong

Not focusing enough on customer and sale

External factor

Limited or no involvement from the owners

Not communicating clearly

Fail?

Why M&A deals fail?

Culture integration issue

Getting deal structure or price wrong

Not focusing enough on customer and sale

External factor

Limited or no involvement from the owners

Not communicating clearly

Fail?

Why M&A deals fail?

Culture integration issue

Getting deal structure or price wrong

Not focusing enough on customer and sale

External factor

Limited or no involvement from the owners

Not communicating clearly

Fail?

Why M&A deals fail?

Culture integration issue

Getting deal structure or price wrong

Not focusing enough on customer and sale

External factor

Limited or no involvement from the owners

Not communicating clearly

Fail?

Why M&A deals fail?

Culture integration issue

Getting deal structure or price wrong

Not focusing enough on customer and sale

External factor

Limited or no involvement from the owners

Not communicating clearly