Generally, starting a business mans initiating a company from zero, figuring out your own ideas and getting things ready from the ground up. However, such type of setup might require hard efforts to develop your customer’s base. You will also invest handsome money on advertisement and promotion. To avoid such type of hassles, buying an existing business is the best idea for investors.
Existing businesses are quite safe and less risky. Managing a company that is already operating and generating profits is much easier as compare to the one that is recently launched. Additionally, existing businesses do have a customer base, positive reputations and workforce who are familiar with each and every aspect of their business.
Sometime, in a highly modest corporate sector, buying an existing business is expensive but if it has a proven track record, you will feel more comfortable when dealing with it. If you are willing to get the best deal with existing business setup in Dubai, you must consider the following things to work accordingly.
Past Financial Statements:
Ensure that you have acquired the financial statements of past five years of the company. You must evaluate every single statement and compare them to the total tax return of them. This is the best approach to identity how much the business is capable of earning. If possible, seek assistance of an expert accountant with expertise in the same industry.
Existing Assets And Building:
This is the office supplies and business assets that you will use for daily operations. You must consider the model numbers and names of every product and if possible, talk to suppliers to give you a full description of each. Also ensure the product’s existing value and if it is acquired either by cash or on lease.
Inventory:
Always examine the existing inventory of the business. Ensure that you understand the status of existing inventory and what everything existing was worth specific years earlier. It might be hard to assign a suitable value for the inventory; however, while working with business consultants in Dubai can make the process simple and handy for you.
Copies Of Contracts And Legal Documents:
Consider all the contracts including agreements related to purchase and lease, sales, recruitment, and shipment that have bind the business legally. You must also evaluate other legal documents including copyright rules, registered trademark and other crucial statements. Working with a lawyer is the best approach in terms of dealing with contracts and legal documents of existing business.