Mergers and Acquisitions
Cambodia boasts the highest rate of foreign investment growth in ASEAN, with investors drawn to its inexpensive labor, relatively stable political environment and strategic location. At the same time, Cambodia is routinely ranked at the bottom of “ease of doing business” rankings.
We disagree with these rankings, and increasingly, foreign investors do too. Cambodia is not a difficult place to set up or acquire a business, if you have the right partner on the ground.
For our clients, that partner is VDB Loi. Our clients come from around the region and around the globe, attracted to our deep expertise in corporate law, commercial acumen and proficiency in various languages (Chinese, Japanese, English, French, German and Bahasa, just to name a few).
Our integrated services go beyond the transaction, identifying hidden risks, practical challenges and cultural nuances. We provide a one-stop shop for corporate services, including tax, accounting, employment law, regulatory compliance and advisory.
Cambodia is also increasingly a platform for regional investment, with its low cost and high standard of living for expatriates. With our firm’s regional expertise, we can assist you in structuring a regional investment, forming international supply chains and providing corporate services across jurisdictions.
A Cambodian joint venture is an effective entry vehicle to the expanding local economy. While the regulatory approval process remains time-consuming, a new foreign investment law came into force in July 2006. The joint venture is becoming an increasingly popular investment vehicle, because it combines the international expertise and technology of a foreign company with the specialist local knowledge of its Cambodian partner. It’s an attractive opportunity for foreign investors to secure property rights and gain valuable experience through a local partner in order to realize their investment in Cambodia.
Such a registered partnership acquires a legal personality and has rights to own movable or immovable property and to carry on business and contract in its own name. After the Cambodian government abolished its double pricing system, this partnership form gained more advantages. For example a joint venture pays the same prices for goods, commodities or services controlled by the government as Cambodian-invested companies.
Regardless of the investor’s goals, VDB Loi is there to provide comprehensive assistance and guidance. We provide exceptional services, from joint venture agreements to offshore structuring, tax mitigation and complex financing.
Mergers and Acquisitions
VDB Loi is blazing new trails with respect to how mergers and acquisitions are carried out in Cambodia. Our specialists bring to a transaction broad international experience and a depth of expertise gained from working in some of the world’s leading international law and tax firms, which, when combined with our local expertise, makes for an unbeatable combination.
Merger and acquisition activity always marks a significant point of change for an organization, irrespective of the sector or transaction size. Demands and pressures are heightened, and the deal must be managed as effectively and efficiently as possible. Recognizing this, we form specific deal teams, which are responsive and accessible to meet the deal’s requirements.
Our deal teams include industry specialists relevant to the transaction and to the post-closing integration phase. A key focus is to help manage execution and residual risks. We work to do this and to ensure a transaction is documented and settled as effectively and quickly as possible.
VDB Loi has assisted on some of the largest acquisitions in Cambodia, including in the telecommunications, power, and banking sectors. We have also advised countless smaller investors seeking a low-risk pathway into the region’s high-value markets.
With Cambodia’s rapidly formalizing economy, many established companies are lagging behind in terms of compliance. Therefore, acquisitions require careful tax and legal due diligence. We have the specific expertise in due diligence that’s needed, and are often called upon by investors to verify the tax and legal standing of counterparties. We also work with our clients to ensure that the acquisition avoids high tax liabilities and assigns risk appropriately.
Mergers are still a new concept in Cambodia, but VDB Loi is leading the way. We are actively working with investors and government regulators to open up the merger market and are currently pioneering groundbreaking mergers.