Bamboo Capital Group CEO shares about M&A strategy

According to Mr. Nguyen Tung Lam, General Director of Bamboo Capital Group, choosing the right partner is a vital factor in M&A deals. This not only determines the success of the transaction, but also shapes the foundation for long-term cooperation.

According to Mr. Nguyen Tung Lam, General Director of Bamboo Capital Group, choosing the right partner is a vital factor in M&A deals. This not only determines the success of the transaction, but also shapes the foundation for long-term cooperation.

Mr. Nguyen Tung Lam, General Director of Bamboo Capital Group

In the 3 quarters of 2024, domestic investors will play a major role in the Vietnamese M&A market. How do you view this trend?

The fact that domestic investors accounted for 53% of the total M&A transaction value in the three quarters of 2024 is a great step forward, reflecting the growth in both financial capacity and strategy of Vietnamese enterprises. Domestic enterprises are increasingly demonstrating their acumen and professionalism in seizing M&A opportunities, especially in key industries such as industrial park real estate, clean energy and manufacturing.

This also reflects the improvement of the business environment in Vietnam. Government policies, including administrative reforms, encouraging domestic and international investment, and improving the legal environment, have created a favorable foundation for M&A transactions, making it easier for domestic investors to participate in large deals and expand their operations.

The past few years have seen many big deals announced, but choosing the right partners and creating added value for each other is not a simple matter. Can you share your strategy for risk management and cultural integration, especially in M&A?

Choosing the right partner is a vital factor in M&A deals, when the buyer only owns a portion of the shares or the two parties will build a co-ownership model.

At Bamboo Capital, we recognize that the similarity in strategic vision, development goals and core values between the parties is a prerequisite. This is the foundation for building trust and also the motivation for the parties to work towards greater goals.

In fact, an M&A deal is only sustainable when all agreements are built on a transparent and clear basis from the beginning, including project orientation, financial model, and clear definition of rights and responsibilities of each party. This transparency will help minimize conflicts and establish an effective cooperation roadmap.

An indispensable factor is the objective and reasonable valuation of the business/project. This is not only a test of fairness between the parties, but also ensures that both the buyer and the seller achieve harmonious benefits, thereby promoting long-term synergy.

After the transaction is completed, ongoing monitoring and evaluation of the cultural and strategic integration process is essential. Performance metrics should be established to ensure that M&A objectives are being met and adjustments made as necessary.

The story of sustainable synergy after M&A is easy to say, but very difficult to do. So what has Bamboo Capital prepared to confidently carry out M&A deals?

M&A is not only a matter of finance or strategy, but also a matter of corporate culture harmony - a challenge that is often underestimated. At Bamboo Capital, I place special emphasis on building cooperative relationships based on understanding and shared values.

For international business transactions, in addition to helping foreign partners understand legal regulations in Vietnam, we also coordinate with consulting units to design appropriate transaction models, ensuring harmony between the two organizational cultures.

Leaders need to demonstrate a commitment to cultural integration and create a positive work environment where shared values are respected and promoted. They need to ensure that employees feel voiced and involved in this integration process.

Participants should develop a detailed plan for cultural integration, including creating training and communication programs between employees from both sides. This helps reduce conflict and increase team consensus.

How do you evaluate a successful M&A deal?

In the M&A field, success is not only about completing a transaction or signing a contract, but also about realizing value afterwards. In deals where the buyer takes control or owns the entire business, the “closing deal” can be considered an important milestone.

However, that is just the beginning. True success is measured by whether the acquiring company operates or implements the M&A project effectively.

A truly successful M&A deal must ensure that both parties achieve common strategic goals, understand each other and work together to optimize resources, jointly restructure the business, reorient development strategies and deploy new effective business models.

Source: https://baodautu.vn/tong-giam-doc-tap-doan-bamboo-capital-chia-se-ve-chien-luoc-ma-d231464.html