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Business Separation and Merger

Solutions for restructuring, scaling up, and optimizing business operations.

Why choose MAN?

Step 1: Make the decision to temporarily suspend operations.

The business decides to temporarily suspend operations in accordance with its charter or internal regulations.

  • Limited Liability Companies, Joint Stock Companies: Hold Board of Directors/General Meeting of Shareholders and issue Resolutions
  • Private enterprise: The business owner makes the decisions.
Treatment time: 1-3 days

Step 1: Make the decision to temporarily suspend operations.

The business decides to temporarily suspend operations in accordance with its charter or internal regulations.

  • Limited Liability Companies, Joint Stock Companies: Hold Board of Directors/General Meeting of Shareholders and issue Resolutions
  • Private enterprise: The business owner makes the decisions.
Treatment time: 1-3 days

Step 1: Make the decision to temporarily suspend operations.

The business decides to temporarily suspend operations in accordance with its charter or internal regulations.

  • Limited Liability Companies, Joint Stock Companies: Hold Board of Directors/General Meeting of Shareholders and issue Resolutions
  • Private enterprise: The business owner makes the decisions.
Treatment time: 1-3 days

Definition and forms of division, separation, and merger.

Dividing the business

This involves a business transferring a portion of its assets, rights, and obligations to one or more newly established businesses.

Separating businesses

This refers to a company transferring all or part of its assets, rights, and obligations to one or more new companies, while the original company continues to operate (if it is a partial spin-off).

Business mergers

When one company acquires all the assets, rights, and obligations of another company, the merged company ceases to exist.

Business merger

This refers to the process by which two or more companies cease to exist in order to form a new company, inheriting all the assets, rights, and obligations of the merged companies.

Legal basis

The division, separation, merger, and consolidation of businesses are regulated in detail in the 2020 Enterprise Law, specifically:
Articles 192-194: Regulations regarding the division of businesses.
Article 198: Regulations on business mergers
Articles 195-197: Regulations on business separation
Article 199: Regulations on business mergers

Benefits and challenges

Benefit

Challenge

Applicable cases

Dividing the business

  • Business restructuring encompasses many business areas.

  • Resolving conflicts between groups of shareholders/members.

  • Specialization of production and business activities.

  • Implement a diversified business development strategy.

Separating businesses

  • Separate a business area or project for development.

  • Separating risks across business activities.

  • Optimize management and increase specialization.

  • Prepare for the transfer of a portion of the business.

Merger/Consolidation

  • Expand in scale and market share.

  • Leverage the strengths and experience of other businesses.

  • Diversify products, services, and markets.

  • Create a competitive advantage through synergy.

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