M&A activities expected to blossom in 2011

Mergers and acquisitions (M&A) deals will increase strongly in 2011 and become the development strategy of private enterprises.

M&A helps enterprises grow sharply.

A recent survey launched by the international consulting company, Grant Thornton, showed 17 percent of Vietnamese enterprises said that their growth plan in next three years will through M&A deals. In comparison with 2010, this ratio was 19 percent and it was only 15 percent in 2009. However, up to 20 percent of Vietnamese firms believed that there will be a change in the ownership relation in their companies, nearly two fold increase against the global average ratio of 11 percent.

Enterprises expected via M&A deals, they will be able to achieve sharp growth as well as create new development strategy in the current difficult financial and economic context.

Overall in the world, amongst surveyed economies, Brazil, Russia, India and China were included into the group with the highest feedback ratio on selecting the redemption method with 44 percent of concurrence while it was only 27 percent in 2010. As a country with experience in the field of M&A, 40 percent of Indian firms hope of international M&A deals in next three years.

Easily to penetrate into emerging markets and a short way helping enterprises quickly grasp technology and build trade mark are expectations of 45 percent of Chinese firms via M&A deals.

Ken Atkinson, Grant Thornton Vietnam’s general director said that after two years of declines, the growth of the economy and the loosen credit policy have been creating a boom in demand for M&A not only in Vietnam but also in the globe. – Tuoitre

Tags: Vietnam M&A