- What is technical evaluation and the importance of this activity in the M&A:
Equipment technical evaluation is the process of testing and assessing the current status of equipment to determine if it meets the manufacturer’s specifications in terms of quality, safety, and future reuse.
For M&A, equipment technical evaluation is essential for investors to consider merging/ acquisition either when they are in other countries outside of Vietnam and are not familiar with the Vietnamese regulations or they need a third-party assessment to ensure transparency. In case the investor has decided to process M&A, technical evaluation is also very important when valuing assets, preparing budgetary for new purchases, or continuing to use existing equipment for cost savings.
- Industries that should perform Equipment technical evaluation:
All industries are subject to mergers and acquisitions, especially those on the list of 11 Business lines containing high risks of occupational accidents and diseases specified in Circular No. 07/2016/TT-BLDTBXH including:
- Coke and petroleum mining and refining;
- Plastic/ rubber-based chemical production;
- Production of metal and metal products;
- Mining and quarrying of nonmetallic minerals;
- Construction;
- Ship and boat building and repairing;
- Power generation, distribution and transmission;
- Processing and storage of fisheries and aquatic products;
- Manufacturing of garments, apparels, leathers and shoes;
- Scrap recycling;
- Environmental cleaning.
- Evaluation process:
Site survey and collect information:
- Collect information on the equipment and operation system;
- Review system design and technical documentation, and specification;
- Site survey.
Inspection and operation test at the site:
- Visual inspection, test run of the system;
- Consider the surroundings;
- Interview with operators and other people at the site.
Equipment Technical Evaluation report:
- Collect test results, and trial system results;
- Develop the technical assessment report, giving recommendations to investors.
- How it works
If your company:
– Is an investor that would like to do M&A with a company in Vietnam, but is unable to assess directly and does not know the equipment standards under Vietnamese law;
– Is a bank that needs to evaluate equipment and systems’ assets or technical condition.
Then make a booking with us today and we’ll be in touch to advise you at your convenience.
See further article on the service of HSE Gap Analysis and CSR Audit.
