Introduction：M&A Deal Introduction
VietBiz provides a variety of information on business in Vietnam and introduces promising M&A deals in Vietnam. In this issue, we will introduce the sale of a Vietnamese offshore development company (Company X) located in Hanoi, Vietnam, which is one of the top-ranked companies in terms of performance, sales, and scale.
Introduction of The Selling Company
Company X is a major offshore development company with approximately 300 employees. The company has a development base in the center of Hanoi, as well as a head office in Tokyo, and has established a system to support clients’ development from both Japan and Vietnam. The company has received inquiries from many clients, including major listed companies, and has achieved rapid growth, increasing its number of employees to approximately 300 in just two years since its establishment.
Overview of Company X and Terms of Sale
| establishment | 2019 |
| business | Offshore development (systems and applications) |
| location | (1) Tokyo Head Office (2) Vietnam Office (Capital: Hanoi) |
| the number of employees | Approx. 300 people |
| sales | Approx. 800 million yen (2022) |
| major clients | More than 100 clients, including major Japanese listed companies |
| Percentage of sale | ～100％ |
| Desired Sale Price | 1 billion yen and up |
Main Clients
The company has a track record of receiving orders not only from major listed private companies, but also from public agencies, national universities, and other public institutions.
Private-Sector Business
- NTT Communications Corporation
- JGC Global Corporation
- Other major restaurant chains, hotel chains, cab companies, industrial equipment manufacturers, logistics companies, human resource companies, etc.
Public Institution
- Ministry of Internal Affairs and Communications
- National universities
- We have experience in receiving orders from other local governments, etc.
Main Achievements
Company X has experience in developing the following systems and applications.
Business Management System (for construction companies)
Time and attendance, scheduling, and payroll for construction site craftsmen. You can also easily manage orders and receipts on the same platform with your clients. There is also a smartphone app that captures location information when registering for work and checks if the worker is on site.
Automatic calculation of salaries based on settings for hourly, daily, monthly, on-site, and single parent pay. Aggregation of shifts submitted by staff (checks against the number of shifts worked on the same day). Time and attendance management with a location-based ticking function.
Attendance Management System (for cab companies)
Attendance list file (Work system is organized. Excel file) and the work schedule file (based on the attendance list file, the shifts of each employee for each month are organized. The file is automatically created using VBA from the attendance list file (an Excel file) and the work schedule file (a file that organizes which employees are working on a daily basis) and the attendance record file (an attendance record for each employee). All of these functions are available in the cloud.
Online Japanese Learning Platform
A web system for self-study of the Japanese language. Monetized with a monthly fee and currently has 50,000 paying users. Grammar, Kanji, Vocabulary, Listening Comprehension, and Reading Comprehension courses all with an optimized UI/UX. There are courses for different levels of ability for various learners. Japanese news with subtitles, music, and other content are designed to make learning enjoyable and unforgettable for the learner.
Matching and Order Management System for Overseas Freelancers
An overseas version of a crowdsourcing site. It has established a proprietary algorithm that automatically sources and proposes freelancers living overseas who match the client’s requirements. In addition to matching, the site also manages the phases of order placement and receipt, as well as settlement management, making it possible to manage everything from order placement to delivery and closing in one stop.
Quality Standards
Company X complies with the following international standards (ISO) and is most focused on establishing an internal quality control system.
- ISO 9001:2015 Quality Management System
- ISO 27001:2013 Information Security Management System
Awards
Company X has received the “Sao Khue Award,” which is one of the most reliable and prestigious awards for IT companies in Vietnam.
Terms of Sale
The following section details the terms of the sale of Company X. The following terms and conditions can be negotiated flexibly within the context of specific discussions.
Percentage of Sales
～100％
Transfer Price
1 billion~.
Acquisition Benefits
Below are the advantages of acquiring Company A from the buyer’s perspective.
Ability to Take over An Already Successful Business Model and Internal Structure without Modification
The most difficult part of the offshore development business is securing a workforce of talented engineers, bridge engineers, and salespeople, and creating a system to ensure their efficient operation. X already has a system in place to facilitate new customer acquisition, requirements interviews, personnel assignment, development, and after-sales follow-up. Therefore, the buyer can start business the day after the acquisition.
Securing Excellent IT Human Resources in Vietnam
Company X already has approximately 300 highly skilled IT personnel, and the M&A will have the advantage of securing such personnel without any difficulty in recruitment.
Contact Us
For more information, please contact VietBiz or its operator, ONE-VALUE Co.
