In October 2019, CNC was engaged by our Clients – a manufacturing enterprise in textile dyeing to provide legal advice and assistance in a transaction about transferring a company. The Buyer is a domestic enterprise working in another business line. The value of this M&A transaction is about 3 million USD, determined unanimously by both Parties.

Issues need to be solved in this M&A transaction

CNC was informed that both Parties had negotiated many times but they still had not reached a final agreement and the method of operating the transaction. The primary reason is the difficulties relating to the financial problem of the Buyer. The Buyer was not capable of finance and depended on the bank’s credit capital for payment in this transaction. Following this, the Seller concerned that there were many risks for the Seller.

Direction to solve this M&A transaction

With intensive knowledge of M&A transactions, CNC solved these difficulties for the Parties by restructuring the transaction into 02 phases:

• Phase 1: Transferring the assets to assist the Buyer with their capacity for bank loans. In particular, the Buyer shall use the purchased assets directly to secure the loans.
• Phase 2: Transferring the equity and conducting the legal proceedings relating to completing the M&A transaction;
• At the same time, CNC used the bank’s payment guarantee method to resolve the concerns of the seller about the full payment obligation could not be performed.

Finally, after nearly a year since CNC officially participated in the advisory assistance, this M&A transaction was completed to the Clients’ satisfaction when their interest was fully protected by CNC.

The successful assistance in this transaction continues to affirm that CNC is a reliable place that earns the Clients’ trust in the engagement to solve many complicated legal issues in M&A transactions.

Further consultation

It is our honor to companionably support clients in M&A transactions. Responses  to  client requests can and will be delivered via email or voice, using the contact information provided below: 

CNC^© | A Boutique Property Law Firm

The Sun Avenue, 28 Mai Chi Tho Boulevard, An Phu Ward, Thu Duc City,

Ho Chi Minh City, Vietnam

T: (+84-28) 6276 9900 | H/L: (+84) 916 545 618

cnccounsel.com | contact@cnccounsel.com