There is still a big gap between buyers and sellers.

The valuation gap between buyers and sellers in M&A deals remains large, so the two sides cannot meet. This is the biggest challenge for Japanese businesses.

Mr. Tamotsu Majima: There is still a big gap between buyers and sellers.

The valuation gap between buyers and sellers in M&A deals remains large, so the two sides cannot meet. This is the biggest challenge for Japanese businesses.

Sharing the challenges in the discussion session at the 16th M&A Forum 2024 organized by Dau Tu Newspaper on the afternoon of November 27, in Ho Chi Minh City, Mr. Tamotsu Majima, Senior Director, RECOF Corporation said that there are 2 challenges that Japanese enterprises face when doing M&A.

Firstly, the price gap between buyers and sellers is still very large, so the two sides cannot meet each other.

“In some industries, the business results are not as high as expected, but the seller sets the price quite high, while the buyer bases the price on the most recent financial report and sees that there is a huge price gap between the two sides,” Mr. Tamotsu Majima raised a practical problem.

Second, the M&A approval process is hindered, as many authorities have different and time-consuming instructions.

From the Company's recent transactions, Mr. Tamotsu Majima said that when doing M&A procedures, he always faced slow processes, but still had to wait patiently and overcome this barrier.

Mr. Tamotsu Majima, Senior Director, RECOF Corporation shares challenges in M&A - Photo: Le Toan

Commenting on the investment potential in Vietnam, this businessman assessed that this is a very potential market, with GDP growth always at 6-7%, while in Japan it only increases by 1-2%.

Recently, Japanese investors’ investment in Vietnam seems to have slowed down. However, the situation may change in the near future when the new Japanese government cabinet will have reform policies to help Japanese enterprises invest abroad.

Moreover, Japanese companies now have large cash flows, and under pressure from shareholders, companies must invest money.

Commenting on the Vietnamese M&A market in 2025, Mr. Tamotsu Majima believes that the Vietnamese market is still very attractive to Japanese enterprises because of its stable political situation and good economic growth.

"In 2025, the M&A market in the consumer goods, manufacturing, and services sectors will be vibrant," said Mr. Tamotsu Majima.

Source: https://baodautu.vn/ong-tamotsu-majima-van-con-khoang-cach-lon-giua-ben-mua-va-ben-ban-d231123.html