5 THINGS YOU NEED TO KNOW ABOUT PROJECT TRANSFER

1. Overview of project transfer

Investment project is a set of proposals to invest medium-term or long-term capital to carry out investment and business activities in a specific area within a defined period of time.

Transfer of an investment project is when the investors of a project transfer part or the whole of the project to another investor through an investment project transfer contract.

What is investment project transfer?

2. Forms of project transfers

1. Transfer, receive all or most of the shares/contributing capital of the Company owning the project.

This form is often chosen because it has many advantages such as quick procedures, cost savings... However, it may be related to other business activities of the enterprise that shareholders do not want to transfer.

2. Project transfer is not associated with the transfer of shares/contributing capital/company transfer.

The form of shareholders not transferring shares/contributing capital but just want to transfer a specific project that the company is implementing to serve a certain purpose.

3. Transfer of property on land

The transfer of the right to use leased by the state land is not allowed. However, individuals or organizations are entitled to transfer properties attached to the land and the transferee enterprise continues to carry out the procedures for land lease.

Forms of project transfer

4. Business merger

After a business merger, the business that owns the project will cease to operate. All assets, rights and obligations of the company owning the project will transfer to the merging company.

5. Divide and separate the enterprise that owns the project, then transfer the shares/contributing capital of the separated enterprise when the project is eligible.

Depending on the type of business, there will be different separation plans. After completing the division and separation of the enterprise and legal procedures, the parties will transfer the contributing capital and shares. This is considered one of the options to help control obligations and debts transparently and clearly.

3. Factors that affect the project transfer process

1. Real estate market

If the real estate market develops transparently, the transfer transaction will be stable and balanced; On the contrary, the transfer transaction will become risky, the supply will not meet the demand if the real estate market is negative and unbalanced.

2. Legal factors

These are factors that greatly affect the project transfer process. The parties are sometimes subject to strict state regulations.

3. Capital and financial market

In order to transfer the project, the investor needs to mobilize a certain amount of capital, as well as the supply of labor and related construction goods. Therefore, fluctuations in capital and financial markets affect the stable development of the national economy in general and the project transfer process in particular.

It is necessary to pay attention to the factors that affect the transfer process

4. Criteria for selecting a project transfer partners

1. Vision and strategy of partner

• Partners' goals when transferring projects
• The vision and strategy of the partner should be consistent with the

development orientation of the business

2. Business activities of partners

• Experience and achievements of partners in the industry.
• The operation and work of the partner enterprise.
• Qualification of the leader of the partner enterprise.
• The financial situation of the partner enterprise is an important criterion that businesses need to pay attention to for long-term cooperation and limit risks.

3. Criteria of the investor receiving the transfer project

The investor receiving the transfer of the whole or part of the project must be a real estate enterprise, have sufficient financial capacity and commit to continue the implementation of construction investment and business in accordance with the provisions of law, while ensuring the progress and content of the project

Choosing the right partner makes your investment safer

5. Benefits of project transfer to related parties.

1. To businesses

The synergy from each transfer will help improve business performance and post-transfer business value.

- Increase the size of the business

- Reduce manpower cost

- Improve financial resources

- Raise the level of technology - technique

2. To investors

As the subject that directly invests capital and carries out investment activities in real estate projects, profit is the first and most direct benefit that the Investor aims at when implementing an investment project.

At the same time, through the transfer of the project, investors can expand the operation scale of the enterprise, affirm its position in the market, improve the image and reputation of the enterprise. Thereby creating more favorable conditions for businesses in mobilizing capital in the market for their development goals.

Benefits from transferring investment projects

Conclusion:

If your brand needs to learn more about project transfer, use MMatch - IMMERGERS' business buying and selling platform, which helps investors find project transferors, as well as help the transferor finds a customer.