Mergers & Acquisitions (”M&A”) are useful tools to facilitate companies starting or expanding their business in Vietnam. However, to guarantee the implementation, it is crucial to master all of the possible tax exposures associated with a deal, especially for cross-border deals where different tax and corporate regulatory systems are involved.
To assist Clients in realistically measuring tax risks implied in M&A transactions, Grant Thornton Vietnam provide Tax Due Diligence and relevant services focusing on:
- Identifying hidden tax exposures on both the buyers’ side and sellers’ side;
- Advising the feasibility with and viability with possible structures for the deal; and
- Providing knowledgeable guidance on post-deal procedures/disposals.
Approaches and services:
Your business: Pre M&A transaction
Service 1: Regulatory advice
Grant Thornton’s solutions: Provide professional advice on Vietnamese regulations for the foreign investors’ initial understanding
Timeline: 1-2 weeks
Deliverable:
- Verbal/email correspondence advice;
- Memoranda
Your business: Tax liabilities identification
Service 2: Buying’s side and selling’s side tax due diligence
Grant Thornton’s solutions: Conduct fieldwork to review the Targets’ tax documentation to identify tax exposure for Buyers and Sellers
Timeline: 1-3 weeks.
Deliverable: Report on tax exposures and possible mitigation recommendations.
Your business: Tax and Corporate restructuring
Service 3: Advise on business restructring
Grant Thornton’s solutions:
- Advise on feasible and effective structures for both business and tax purposes;
- Advise on relevant licensing and liquidation procedures.
Timeline: 1-2 weeks.
Deliverable:
- Advisory Report;
- Meeting/ email for clarification
Your business: Wind-up disposal
Service 4: Liqidation and post-deal clearance
Grant Thornton’s solutions:
- Return Licenses to relevant Authorities;
- Labor and social insurance obligation clearance;
- Tax and customs clearance.
Timeline: 3- 6 months.
Deliverable
- Confirmation of obligation clearances by Tax/Customs/ Insurance Authorities;
- Closure approvals
