The value of business incorporations and mergers and acquisitions has certainly risen in the past few years. The market share for businesses coming together has risen to an altogether new level. Most Singapore businesses are peddling in an outbound business acquisition market and broadening their market shares and profits.
However, buying a business is not just a talk about numbers it is much more than that!
Too many things are to be known before you transact with someone to expand your business horizons – legal and otherwise.
Amount of expansion
Once you have managed to find where exactly you are going invest and expand, you next step should be to consider how much are you willing to expand!
This decision accounts to be the most powerful decisions you would ever take. A lot of planning and strategizing would therefore go into deciding the extent of your expansion – just the assets or the whole company.
Remember, it is a once in a lifetime decision to buy a new business in Singapore. Some decisions added to your expertise and could bring wonders your way.
Perform your diligence!
Another thing that needs to be taken into consideration when making that final buying decision is to analyze the deal properly.
Yes, buying a well-established business is a great deal, however, what if the business is coming your way with hidden liabilities? You would want to analyse the hidden risks in advance before making your final purchase decision.
You need to analyze the situation, do your own research, perform your diligence before making sure the business you are trying to buy is a good deal for you for years to come. Otherwise, you should simply consider setting up a new company as an easy way to establish yourself in Singapore.
Notarize the terms
Buying a business in Singapore is of course a fulfilling and productive choice. A mere handshake or a verbal agreement cannot do justice to the same! This is why it is important that you put down your terms and conditions as a legally binding contract, once things are finalised. This way, both the parties can formally come to the conclusion of their deal without having to back out of their pre-decided terms and obligations.
Think about the employees
When you are buying an already existing business, you are not just buying the assets, the company and the brand, the employees come along with it!
You need to decide whether or not you are going to keep the same staff in the company you are investing in or prefer to hire a new set of employees. Everything comes with its own list of pros and cons, but it completely depends on your preferences.
You need to make this decision quick to ensure that you are able to provide your new company with the workforce it deserves, even if it means you have to hire foreign workforce and provide them with an employment pass at the earliest.
Check for GST registration terms
When you acquire a business that is not registered for GST, perfect! You can always start afresh with your GST registration. However, if you buy a business in Singapore that is already registered for GST, you would want to renew the registration.
Since your new business, the one you just acquired now have new owners, i.e. you and might as well have a new business profile and details, it definitely calls for a quick need to register for GST.
Engage in buying a business in Singapore requires patience, diligence, determination and a set of professionals! It is easy, the global business hub awaits your expertise.