Starting a sports business can be a worthy investment in Thailand. After all, the Thai people have a great dedication to various sports like soccer, tennis, badminton, and swimming. The national sport of Thailand is Muay Thai, which is the traditional martial arts of Thai boxing. The number of sports spectators and TV viewers is also large, which means there is a decent chance of acquiring sponsorships and deals. Furthermore, Thai investors have increased investments in popular sports teams throughout the world. This will bring more young people into pursuing sports both as a hobby and a career.
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Important Considerations For Sports Business Takeover in Thailand
A business takeover refers to the act of purchase of one company by the other. Typically, business takeovers happen for two main reasons. First, there may be a large company that wishes to decrease its competition and increase its market reach by acquiring its competitors. This is generally referred to as horizontal takeover. The other type is called a vertical takeover. In this type of takeover, the company acquires another smaller company because it sees a potential benefit for the future.
Before moving on with the process of acquisition of a sports business in Thailand, you must understand various things. For instance, you need to consider the number of shares in each company, the assets involved, the tax on those assets, and corporate taxes. Likewise, you might want to keep track of the share value and the capital of the target company.
Friendly and Unfriendly Takeovers
Business takeovers can be both friendly and hostile. In a friendly takeover, the bidder acquires the target with a mutual agreement. It is generally the best way of taking over a business.
On the other hand, non-friendly takeovers can create an ugly situation. In this type, the target does not want to be acquired. However, since large companies stand firm in their intention, things do not go down well.
Non-friendly takeovers can take place in various forms. First, the bidder company could make an offer that is of better value than the current market value. This is referred to as a tender offer. Similarly, the bidder may target key decision-makers and install takeover-friendly people at the board and management. This is generally referred to as proxy vote. Furthermore, when a bidder buys stocks high enough to cause a change in management and decision making, they can create a favorable environment for a takeover.
Reverse and Backflip Takeovers
A reverse takeover is a situation in which a private company buys a publicly listed company. This generally takes place when a private company wants to be publicly listed without issuing an IPO (Initial Public Offering). Since IPOs and going public entail a lot of hassles and paperwork, some companies find reverse takeover as the better option.
A backflip takeover takes place when the bidder company becomes a subsidiary of the acquired company. This generally happens when a company has a huge amount of money but less recognition throughout the world. Merging with a smaller company with a stronger brand image will prove fruitful for the rich yet lesser-known company.
Fast-track Your Business Takeover with a Reliable Platform
If you want to do a sports business takeover in Thailand, we advise you to consult with a specialist business buy and sell firm. Easy Buy Sell Business Thailand is a highly reputed business for sales portal with unmatched experience in buying and selling multiple types of businesses. These companies include retails, restaurants, accounting firms, audit firms, business and consulting firms, and IT companies. They have a close understanding of the business for sale in Thailand and hence can provide the best deals in a shorter period of time.