The motivation for investing in a ready-made business is a desire to speed up the licensing process, avoid technical difficulties and delays, and have the chance to make a profit from day one. However, without understanding the specifics of doing business in the United Arab Emirates, you can easily make mistakes when purchasing a ready-made business. SORP Group is an expert in the assessment and design of ready-made businesses. We have prepared materials based on our practice.
Stages of ready-made business acquisition
The UAE is a dynamically developing business environment, where you will find a lot of offers for the sale of business on aggregator websites. To choose a high-yield project, you need to analyze it in depth and collect data about the real financial situation and possible prospects for the development of the acquired business.
1
Checking the company's financial position
It is necessary to analyze the
primary documentation, obtain
bank statements and confirm
the turnover.
2
Examination of agreements between the company and clients
It is important for the company not
to receive profit from several large contracts, otherwise there is a risk
that the contracts will be terminated.
3
Examination of labor agreements
A professional team of employees
is the key to business success. Make sure that the employment relationship with employees is properly managed.
4
Bank account check
A check acts as a payment tool
for contractors in the UAE. Checks
may be issued at a later date. It is
advisable to close the previous bank
account and open a new one.
5
Inspection of rental properties
Check the lease terms if the
location of the business plays
an important role in attracting
customers, and check the owner's
intention to continue cooperation.
6
Examination of documents
It is important to check the company's
charter documents, change the local
sponsor, if there is one, and prevent
the possibility of the business being
controlled from this angle.
7
Check with Immigration and the Ministry of Labor
Make sure that the visas of the owners
and former employees are closed.
Check whether the company is blocked
by the Ministry of Labor
for violations.
8
Planning how to develop the business
Ask the seller for a business
development plan and conduct an
independent review. SORP will help
you analyze the plan and make any
changes.
9
Re-registration of the company
After finalizing all legal and
financial matters, we prepare
all documents on a turnkey basis
and help you re-register your
business within 10 days.
Before making a deal, it is important to understand:
The business is organized for sale
Professional market players develop the company in promising areas of activity in order to sell it later for maximum profit.
Owners retiring or relocating
Common reasons for selling. Family circumstances or a new project in another country may force the owner to sell the existing business.
The desire to get rid of losses
Owners of a troubled business may use deception to get rid of it quickly. Such an asset presents a high risk and only professionals can recognize the warning signs that many simply would not notice until it is too late.
Crisis and disagreements between partners
A business with multiple owners carries an increased risk of conflict. Sometimes the only way to resolve matters is to sell the business and divide the proceeds.
Profitable projects in the UAE are sold through professional companies:
They act as a guarantee of confidentiality and proper execution of the transaction. The owner of a successful business will not sell it through aggregator platforms, as this will jeopardize the reputation of the business and cause loss of customers, who will associate the act of the sale with the loss of the enterprise.