M&A DEALS – A SMART STRATEGY FOR BUSINESS EXPANSION

M&A deals are becoming a strategic growth tool for Vietnamese businesses amid global competition. Beyond scaling up operations, M&A also optimizes costs, strengthens competitive capacity and makes efficient use of resources. Major deals in Vietnam and around the world are drawing investor attention and fueling strong momentum in the capital market. However, for a deal to succeed, valuation plays a decisive role - ensuring transparency, limiting risk and determining a fair price.

What is an M&A deal? Strategic benefits for businesses

M&A (Mergers & Acquisitions) refers to the merging and acquisition of companies. A merger is when two companies combine into a new single legal entity, while an acquisition is when one company takes ownership of part or all of another. Although they differ legally, the core goal of M&A is the same: rapid growth, market share expansion, cost optimization and better use of existing resources.

One of the standout advantages of M&A is its ability to shorten development timelines. Instead of spending years expanding into new markets or developing new products, a company can immediately gain access to an existing ecosystem, customer base and technology from the acquired party. Common sectors for this strategy include retail, banking, real estate and technology - industries where growth speed determines competitive standing.

Globally, deals such as Disney–21st Century Fox, Facebook–Instagram and Google–YouTube demonstrate how M&A strategy allows companies to "leapfrog" ahead. In Vietnam, from 2022 to 2024, a number of large-scale deals have given a strong boost to both the capital market and the corporate landscape.

Classifying M&A deals: horizontal, vertical and diversification

M&A deals are typically classified based on growth objectives and business strategy:

• Horizontal M&A: Occurs between companies in the same industry to increase market share and reduce competition. Examples include deals in the retail, food and construction sectors.

• Vertical M&A: Focuses on integrating the supply chain, where a company acquires a supplier or distributor. The goal is to control inputs, reduce costs and improve quality. This trend is common in manufacturing, logistics, agriculture and heavy industry.

• Diversification M&A: A company expands into a new field to reduce dependence on its existing revenue sources - a common approach among major conglomerates such as Vingroup, Masan, Thaco and Sovico.

Classifying M&A deals helps businesses identify core value, build negotiation and valuation strategies and manage risk. It also gives valuation firms a basis for selecting the appropriate valuation method and assessing market impact.

Notable M&A deals in Vietnam and around the world

Globally, several M&A deals have reshaped the tech industry landscape and set new standards for intellectual property ownership:

• Microsoft – Activision Blizzard: expanded global market share in gaming.

• Amazon – Whole Foods: marked a major step into the premium food retail sector.

• Google – Motorola Mobility: strengthened patent ownership and technological capacity.

In Vietnam, the M&A market has grown rapidly, with several standout deals:

• Vingroup – Masan: a share-swap deal that created Vietnams largest retail–consumer goods ecosystem.

• Vingroup – VinCommerce transferred to Masan Group: optimized the retail network.

• Vinamilk: expanded investment into Moc Chau Milk and GTNfoods, reinforcing its position in the dairy market.

• Banking sector: SHB – Habubank and SCB formed from the merger of three banks.

From 2023 to 2025, deals in finance, technology and energy have led M&A capital flows - particularly vertical M&A, which helps businesses optimize operations and production costs.

Valuation – The key to success in every M&A deal

A successful M&A deal combines several factors: accurate valuation, financial transparency, strategic fit and optimized post-merger operations. The Facebook–Instagram and Vingroup–Masan deals, for example, demonstrate the power of ecosystem synergy in rapidly increasing enterprise value.

On the other hand, many deals have failed due to inaccurate valuation, poor risk control or corporate culture clashes - such as AOL–Time Warner or eBay–Skype, which resulted in losses of billions of dollars. In Vietnam, M&A failures are mainly caused by misjudging the market, lack of legal transparency, hidden liabilities and improperly valued assets.

When evaluating an M&A deal, investors typically consider:

• Enterprise value: cash flow, assets and brand.

• Financials and hidden liabilities: debts, tax obligations and contracts.

• Operational efficiency: cost structure, governance and team capability.

• Market share and brand positioning: competitive standing within the industry.

• Business model sustainability: over a 3–5 year horizon.

• Strategic fit: integration with the existing ecosystem.

For this reason, a professional valuation report is an essential prerequisite for reducing risk, protecting capital flow and strengthening negotiating power.

Indochina International Appraisal – A valuation solution for every M&A deal

As the market grows increasingly competitive, every M&A deal requires accurate and transparent valuation to reduce risk and optimize returns. Indochina International Appraisal (SunValue) provides in-depth valuation services, supporting businesses from financial analysis through to detailed reporting for negotiation and investment decision-making.

Indochina International Appraisal’s M&A valuation services include:

• Business valuation: a comprehensive assessment of tangible and intangible assets, brand value, customer data and long-term contracts.

• Financial and cash flow analysis: determining profitability, hidden liabilities and expected earnings.

• Legal and risk review: ensuring transparency around contractual obligations, licenses and potential disputes.

• Market-based and comparable transaction valuation: benchmarking against companies in the same industry, applying DCF, net asset valuation and precedent transaction methods.

• Internationally standard valuation reports: independent and objective, providing maximum support for price negotiation and investment decisions.

With a team of experienced experts and an up-to-date market data system, SunValue helps businesses determine accurate value, reduce risk and increase the success rate of every M&A deal - from banking, real estate and technology deals to some of the largest transactions in Vietnam.

Contact Indochina International Appraisal today for professional consultation and a valuation report that protects your interests and optimizes the value of your M&A deal!

Indochina International Investment & Appraisal JSC (SunValue) 

• Address: Indochina International Valuation System 

• Hotline/Zalo: 081 519 8877 

• Email: contact@sunvalue.vn 

• Facebook: Indochina International Investment & Appraisal 

• Website: inavn.vn

Conclusion

M&A remains a powerful growth strategy for Vietnamese businesses, opening up opportunities to expand market share, optimize operations and strengthen competitive advantage. However, the success of every deal hinges on accurate, transparent and comprehensive valuation. With a team of experienced, multi-sector experts, Indochina International Appraisal is a trusted partner that helps businesses reduce risk, improve success rates and maximize post-merger value. An accurate valuation report is the key that unlocks negotiating leverage and protects investment interests.