There is still a large gap between buyers and sellers.

The valuation gap between buyers and sellers in M&A deals remains very large, preventing the two parties from reaching an agreement. This is the biggest challenge for Japanese businesses.

Mr. Tamotsu Majima: There is still a large gap between buyers and sellers.

The valuation gap between buyers and sellers in M&A deals remains very large, preventing the two parties from reaching an agreement. This is the biggest challenge for Japanese businesses.

Sharing the challenges during a discussion at the 16th M&A Forum 2024 organized by Investment Newspaper on the afternoon of November 27th in Ho Chi Minh City, Mr. Tamotsu Majima, Senior Director of RECOF Corporation, stated that Japanese businesses face two main challenges when undergoing M&A.

Firstly, the price gap between buyers and sellers remains very large, preventing the two parties from reaching an agreement.

"In some industries, business results are not as high as expected, but the seller sets a rather high price, while the buyer, based on the most recent financial reports, finds a huge price gap between the two parties," Mr. Tamotsu Majima pointed out the practical issue.

Secondly, there are procedural barriers to M&A approval, as various authorities provide differing guidance and the process can be time-consuming.

Based on the company's past transactions, Mr. Tamotsu Majima stated that M&A procedures are always subject to delays, but patience is required to overcome these obstacles.

Mr. Tamotsu Majima, Senior Director of RECOF Corporation, shares the challenges of M&A - Photo: Le Toan

Commenting on the investment potential in Vietnam, this businessman assessed it as a very promising market, with GDP growth consistently at 6-7%, while in Japan it is only 1-2%.

Japanese investment in Vietnam has seemingly slowed down recently. However, the situation may change in the future as the new Japanese government cabinet will implement reforms to help Japanese businesses invest abroad.

Furthermore, Japanese companies currently have large cash flows, and under pressure from shareholders, these companies are forced to invest the money.

Commenting on the Vietnamese M&A market in 2025, Mr. Tamotsu Majima believes that the Vietnamese market will continue to be very attractive to Japanese businesses due to its stable political situation and strong economic growth.

"In 2025, the M&A market in the consumer goods, manufacturing, and services sectors will be vibrant," Tamotsu Majima predicted.

Source: https://baodautu.vn/ong-tamotsu-majima-van-con-khoang-cach-lon-giua-ben-mua-va-ben-ban-d231123.html