Things to Consider When Buying a Business in Asia

Thursday, May 15, 2008

Things to Consider When Buying a Business in Asia

If you plan to buy an existing business in Asia, carefully analyse both the advantages and disadvantages. One advantage is that a good business history can increase the likelihood of a successful operation and ensure that finance is easier to obtain. Potential disadvantages can be overestimating the goodwill figure and a poor public image inherited from the previous owner.

As a prospective owner, you should establish the current worth of the business and its future prospects. Some important considerations are:

Vendor: Reasons for sale of the business
Sales: patterns, trends, customer base, current suppliers
Costs: fixed and variable costs, staff costs
Profits: analyse financial records, future cash flow and profitablity
Assets: identify and check all assets including intellectual property and leasing arrangements
Liabilites: outstanding debts, refunds and warranties
Purchase agreement: review carefully
Tax: detailed tax implications. Consult an accountant if required.
Legal issues: leases, business structure, foreign investment laws

For advice and protection in buying a business we suggest that you seek the services of a lawyer, accountant or business advisor.

Very shortly, AsiaBusinessInvestor.com will provide a list of support service providers on the website. Buying a business in Asia is a great way to expand your fortunes, but you should work with experts to ensure that you make the best decisions for the future.

Labels: asia, asia business for sale, buying a business