Introduction
In this issue, we would like to introduce the sale of a human resource services company (tentative name: LOTUS) located in northern Vietnam that specializes in IT human resources. LOTUS provides Japanese companies and other major local clients with excellent IT human resources in the form of introductions and lab-based development. As LOTUS continues to expand its business, it intends to accept investment from Japanese companies. If you are interested in investing in LOTUS after reading this report, please contact the editorial office.
Introduction of the Selling Company
Founded in 2017 and headquartered in Northern Vietnam, LOTUS’ main business is the placement and dispatch of IT personnel and the operation of a recruitment website specializing in IT personnel. The company meets the various needs of major IT companies in the region and provides them with excellent IT human resources. Due to its excellent performance, the company is recognized as a top company in the Asia-Pacific region in 2023. The company is looking for investors with synergies that will contribute to future business growth.
| company name | LOTUS Corporation |
| year of establishment | 2017 |
| business | IT personnel placement, IT personnel dispatch, and IT recruitment media management |
| head office | Northern Vietnam |
| Net sales | 24 billion VND (approx. 140 million yen)（2021） |
| Income before income taxes | 8 billion VND (Approx. 46 million yen)（2021) |
| number of employees | 40~60 |
| Shareholder Composition | CEO: 49%, A parson：51%, B person：1% |
| Transfer ratio | 100% |
| Business Valuation | 5~7 million dollars |
| Sale Schedule | Hoping to close by the end of 2023. |
Services Provided Related to IT Human Resources
LOTUS is the only company on the market that offers all three of these services related to IT personnel.
LOTUS has 100 human resources recruiters (including outsourced contractors) working at any given time to find the best IT talent, and handles a wide range of positions including SEs, programmers, bridge engineers, project managers, and IT consultants.
IT Recruitment Media
LOTUS operates an IT job media. Currently, more than 4,000 companies have posted jobs on job boards, and 103,000 job seekers have visited LOTUS’ IT job boards. Social networking is essential to reach job seekers in Vietnam. Currently, LOTUS expects to have 13,000 followers on its SNS.
IT Temporary Staffing
LOTUS has a long track record of providing temporary staffing services to major banks with strict personnel requirements. Temporary staffing contracts average two to three years, and the temporary staffing business is the main business, accounting for 30% of sales.
Lotus Appeal Points
Considering LOTUS’ competitive advantage, the company’s strengths are detailed below.
Huge Database of IT Personnel
LOTUS has approximately 300,000 databases. Among them.
Even the largest local IT firms have a database of 200,000 people, so they have extensive human resources data comparable to the best in the industry.
Business with High Profit Margins
Recruiters are hired in part from university students and freelancers, and after two weeks of training, they recruit applicants. These recruiters are not full-time employees of LOTUS, but are contracted to work for LOTUS (commission fees are paid), which keeps personnel costs low. On the other hand, the fees paid to clients for IT recruiting are high, which can be seen as a reason for the high profit margins.
Major IT Company Clients
LOTUS’ clients are major local IT companies. Japanese and foreign firms account for 70% of the client base. Representative Japanese companies include Panasonic, Toshiba, and Fujitsu. Major banks and major IT companies make up the majority of domestic firms.
Aiming to Be No.1 in the Industry
Implement the following strategies for 2024-2028 to become No. 1 in the industry.
The founder has contributed to the company’s development to date, but is considering selling to spend more time with his family in the future; LOTUS would like to sell 100% of the company. However, retention of the founders can be discussed in order to support them in taking over the business after the sale. It is possible to withhold a portion of the CEO’s interest in the company as part of the founder’s retention.
Investor Expectations
Synergy Effect
Synergies expected from the investment in LOTUS include the following
Access to the Rapidly Growing IT Staffing Market and Cross-selling to Existing Clients
The acquisition of LOTUS will give us easier access to Vietnam’s rapidly growing IT human resource market. In particular, by gaining access to a market with unmet demand for IT personnel, LOTUS will be able to propose IT personnel recruitment and utilization to its existing clients in addition to its existing human resource services.
Part of A Global Expansion Strategy for IT Staffing Services
In a global economy where IT and tech services are growing rapidly every day, the demand for IT personnel is expected to increase not only in Japan but also in other countries around the world. We can acquire IT personnel in the Vietnamese market and introduce or dispatch them to overseas markets.
Reduce the Cost of IT Staffing and Improve Technical Capabilities of the Company
Vietnam has a large number of young and talented IT personnel, and many Japanese companies also promote the hiring and utilization of Vietnamese IT personnel. However, securing IT personnel through external services is very costly, and acquiring LOTUS will help them secure IT personnel to develop and maintain their own systems.
Enhance brand Strength in the Vietnamese Market
By acquiring a highly visited IT recruiting media, the company expects to further enhance its brand power in the Vietnamese human resources market. This will lead to the acquisition of new clients from Japanese, foreign and domestic companies.
Contact Us
For more information, please contact VietBiz or the operator, ONE-VALUE Co., Ltd
ONE-VALUE Co., Ltd
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