Mergers and acquisitions (M&A) are a favourite investment trend. On the occasion of the launching of Vietnam Financial Investment Joint Stock Company (TigerInvest), Vietnam Business Forum talked with Mr Phan Xuan Can, CEO of TigerInvest, on this issue.
- Would you mind briefly introducing Vietnam Financial Investment Joint Stock Company (TigerInvest) and the online transaction portal MuabanCongty.com?
- What are the benefits for businesses when they join MuabanCongty.com? Does your company have any offline activities?
For sellers, normally companies facing development difficulties or even the possibility of bankruptcy, benefits are new strength and vitality of finance, personnel, technology and management experience. MuabanCongty.com helps sellers find suitable investors or buyers, prompting merger or acquisition.
For buyers, normally investors looking to expand their operations, benefits include opportunities, not only in their industry but also others. MuabanCongty.com helps them find new opportunities, expand more quickly, efficiently utilise their brands and take advantage of the seller’s capital, knowledge, expertise and manpower at suitable prices.
Some people want to start a business by buying an old company in their favoured industry or being a franchiser. They have a better chance of success because such business ideas have been clearly tested.
- What do you think about the development trend of the M&A market in Vietnam, especially with the transitional economy, booming financial market and accelerating equitisation of both state-run and non-state-run sectors?
According to statistics, Vietnam will have 50,000 additional new companies in 2007, and most are small and medium-sized companies. About half of them will go bankrupt in the first two years of operation, and 80 per cent of those surviving after the first two years will close their business within the next five years.
This is a clear evidence of the M&A market and is a chance for TigerInvest. The M&A demand will rise and we have plans to expand operations and join hands with strategic partners, including banks, investment capital, securities companies and others, to support the M&A services of TigerInvest.
- Will TigerInvest establish a mutual fund in the near future? What is the business strategy of TigerInvest for the coming time?
TigerInvests has plans to form an investment fund in the future, which will primarily fund M&A activities. At present, we are in an ideal position to connect domestic and international investors, since we have competitive access to many important investment portfolios and seller demand.
In 2007, we will focus on the two major markets of Hanoi and Ho Chi Minh City. Demand from other provinces and cities will be settled at the two offices in Hanoi and Ho Chi Minh City, before sending to experts for categorising and connecting with suitable investors.
Quynh Chi
Vietnamese
