M&A and digital transformation trends in 2022

07/13/2022

Following the boom in 2021, digital transformation is expected to be the main growth driver of the technology M&A market in 2022.
The Covid-19 pandemic has accelerated the application of modern technology and digitization

According to Baker McKenzie, in 2021, the total value of mergers and acquisitions (M&A) deals in the technology sector will increase by 71% compared to 2020 and reach $1.1 trillion, accounting for 20% of the total value of M&A worldwide. bridge. Besides, the number of deals in this field in 2021 also increased by 34% compared to the previous year.

Entering 2022, digital transformation continues to be expected to be the main growth driver of the technology M&A market because this trend is at the core of the development strategy of most businesses today.

Even as businesses adapt to the Covid-19 pandemic, digital transformation plans will continue to be developed to stay competitive and help businesses manage more effectively. Typically, at the end of January 2022, Deloitte Consulting acquired Dextra Technologies - a Mexican software development company to strengthen the company's software engineering and product systems, accelerating the digital transformation process. separate products into intelligent connected platforms.

In Vietnam, in the past year 2021, businesses have made efforts to immerse themselves in the global digital transformation trend. According to the Ministry of Planning and Investment, for businesses that have just started digital transformation, 57% of businesses have a need for online marketing solutions, 53.7% of businesses seek solutions for working. internal and 43.3% are electronic transaction solutions.

Technology solutions have contributed to changing consumer habits, creating many challenges for traditional business models. Therefore, businesses providing technology applications to support digital transformation are increasingly being noticed by businesses in many different fields to integrate technology into their business activities, serving the transformation process. digital transformation, expanding customer base and towards sustainable development.

In addition, these businesses are also constantly "hunted" by investment funds to diversify their portfolio into essential technology products in the future.

Some outstanding deals in the past year such as FPT's investment in Base.vn, Kiotviet receiving 45 million USD from KKR fund are typical examples of this M&A trend. In particular, the mergers and acquisitions of businesses in this field in Vietnam are still quite friendly and not yet harsh acquisitions. The priority goal of investors is still to inherit the human resources and capabilities of the transferred companies, to invest more capital to research new technologies to develop their business and improve their reputation in the market. school.

M&A opportunities: Potential investors

The investor is one of Korea's leading meat and animal feed production and processing groups, has a long history of operation and is listed on the Korean stock market. The investor owns a portfolio of leading processed meat and animal feed brands in the Korean market, countries in East Asia and Southeast Asia.

In the process of developing and dominating the market, investors have invested in potential countries such as China, Philippines, Vietnam and Myanmar. Through the development process, the investor has achieved an average annual revenue of $ 1.4 billion and total assets of $ 1 billion in 2021.

Investors are interested in food processing enterprises that apply the 3F model (Farm, Feed and Food) in Vietnam to acquire a majority of shares or a joint venture with a majority share in order to expand operations and integrated into the group's strong supply chain.

The investor is a multidisciplinary investment group in Korea, with experience in the fields of education, logistics, fintech (financial technology), e-commerce, and pharmaceuticals. After more than 20 years of establishment and operation, the investor has owned a system of more than 600 primary and secondary schools under the brand name of the group in Korea and other countries around the world.

The investor has continuously expanded its influence in the education sector through investments in potential educational technology businesses in Korea and has become one of the most influential educational corporations. in Korea.

Investors are interested in the education sector in Vietnam and are looking for potential education businesses to increase their presence in the Vietnamese market. Investors have invested in Vietnam and are looking for potential K12 private schools to buy majority shares in order to expand the market in the South.

The investor is one of the leading companies in Korea in the field of plant protection products, seeds and fertilizers with annual revenue of about 700 million USD and total assets of more than 1 billion USD in the year. 2021. Currently, investors are looking for businesses operating in the field of manufacturing or distributing pesticides and agricultural technical products in Southeast Asia to buy back the majority of shares. or joint venture only majority of shares.

Enterprises looking for investors

The company has more than 25 years of experience in the field of farming, processing and trading value added foods from seafood and exported to many countries around the world such as Korea, Singapore, Italy, Japan, Norway ... The company's factory is about 5,000m2 wide on a land of 12,000m2 with a capacity of 1,000 tons/year. The company is looking for strategic investors or financial investors with investment experience in the value-added food industry from seafood, or can contribute to the development of the company.

By Doanh Nhân Sài Gòn

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