Registering a company is not the only way to start a business in Europe and Asia. Buying an existing company with an account in Hong Kong, for example, can be a real salvation for people who want to have a business and operate in the international market. However, to find a great offer, you need to know some nuances. We will discuss them below.

CONTENT:

1. Buy a ready-made company without a current account in Europe
2. How to make the right choice of a ready-made company in Europe?
3. Be cautious
4. 20 things to pay attention to when buying a ready-made company in England
5. How not to make a mistake when buying a ready-made company?

Buy a ready-made company without a current account in Europe

Most entrepreneurs do not consider buying an existing company in Switzerland or other European countries, for one simple reason: they are not aware of such a service. Only a small percentage think about developing their own ideas by building a business for moral and material satisfaction. By the way, this decision has several clear disadvantages, including difficulties with gathering a client base, marketing, hiring employees, studying the legislation of an unfamiliar country, and tax payments. And all this will have to be done without experience and reputation.

Also on the topic: Registration of offshore companies in Hungary: nuances and recommendations

It’s difficult, isn’t it? Therefore, in most cases, buying an existing company in Austria or other countries is less risky than starting from scratch. You are registering a business that is already generating (or has generated) profit. You have an established client base, reputation, and employees familiar with all aspects of the business. There is no need to reinvent the wheel—successful business formulas are already implemented.

On the other hand, buying an existing company in Dubai often costs more than starting a business independently. Since the emirate in the UAE is a kind of “magnet” for investors and entrepreneurs. Therefore, it is worth finding the required amount that will quickly pay off.

Another advantage: bankers and investors usually feel more comfortable dealing with a business that already has experience. Therefore, if you need financing, it is more realistic to get a loan for a company with weight in certain circles. Moreover, buying a business can give you valuable legal rights (patents, shares) that may be profitable. Of course, there is no such thing as a guarantee in this business. If you are not careful, you might acquire a loss-making enterprise, a business blacklisted by European partners, or a company with a huge tax debt.

To avoid this, be sure to read this article or call our consultants. We have a vast database of ready-made businesses in Europe. You can buy a ready-made company in Singapore, Germany, Poland, Cyprus, and other parts of the world.

How to make the right choice of a ready-made company in Europe?

Buying the perfect business starts with choosing the right type of company and country for you. It is best to start by studying industries you are familiar with. They should be interesting to you, matching your skills and experience. Also, consider the size of the business you are looking for (number of employees, offices, volume of services or sales).

Then, determine the geographical region, assess labor resources and costs in that area (including salaries and taxes), to ensure they are acceptable for you. Research each type of business that meets your requirements. Business owners may list their company for sale and wait for you to make an offer.

Contacting us is another way to find a business. We offer assistance, and it pays off almost immediately.

Investmakler‎ operates in two ways:

1. We conduct a preliminary selection of the enterprise. The seller provides complete financial information that can be relied upon during analysis. Contacting us will help you avoid serious risks.
2. We determine your field and offer assistance in business registration. We analyze your skills and interests and then help you set up a suitable business. By collaborating with Investmakler‎, you may discover that an industry you have never thought of is ideal for you.

In any case, our team is ready to offer you negotiation, document preparation services. We are familiar with the latest versions of laws and regulations affecting everything from licenses and permits to financing and conditional deposit. We know the most effective ways to overcome bureaucracy that will save you long months in the buying process. Working with us significantly reduces the risk of missing any important form, payment deadline, or specific stage of the process.

Be cautious

If you have decided on the type of business and sector, you will definitely want to assemble a “team” — a banker, accountant, and lawyer. These people are necessary for the so-called “comprehensive check,” which means analyzing and monitoring all relevant information about the company. However, if you decide to purchase an existing company with us, this need is eliminated. As a result of the comprehensive check, you will know exactly what you are buying and from whom.

Details in the article: Opening offshore companies: features, deadlines, and cost calculation

The preliminary analysis begins with answering the following key questions:

1. Why is this business being sold?
2. What is the overall perception of this industry and specific business in the country?
3. What are the prospects for the future?
4. Can the business control a sufficient market share to remain profitable?
5. Is any raw material needed to generate profit?
6. How have the products or services of the company changed over time?

You also need to assess the company’s reputation and the strength of its business relationships. Discuss with existing clients, suppliers, and vendors their relationships with the business. Contact industry associations and licensing agencies, and credit institutions. This way, you can ensure that there are no complaints from any side.

If after the preliminary analysis the business still looks promising, you should start examining the potential profitability of the business and the asking price. Regardless of the method you use to determine the fair market price of the company, it should consider:

• the financial condition of the enterprise;
• the firm’s revenue history;
• the company’s growth potential;
• intangible assets (such as trademarks and market position).

To get an understanding of the company’s expected revenues and future financial needs, ask the business owner and/or accountants to show the projected financial statements. Balances, profit and loss statements, cash flow statements, and tax returns for the past three years are all key indicators of the business’s “health.” These documents will help you conduct a financial analysis that reveals the “weak spots” and allows you to take a closer look at the company from the inside.

20 Things to Pay Attention to When Buying a Ready-Made Company in England

Below is a checklist of items you should evaluate to ensure the value of the business.

You can make a purchasing decision after a detailed review of:

1. Inventory. This refers to all products and materials inventoried for resale or use in servicing clients. Important note: You or a qualified representative should be present during any inspection. An inventory assessment should also be conducted. After all, this is a tangible asset, and you need to know its dollar value. If you feel it does not meet expectations or is incompatible with your target market—decline.
2. Furniture, fixtures, equipment, and buildings. This includes all products, office equipment, and business assets. Obtain from the seller a list with the name and model number of each piece of equipment. Then determine its current condition, market value at the time of purchase. Find out how much the seller has invested in improving and maintaining the leased property.
3. Copies of all contracts and legal documents. Contracts will include all lease and purchase agreements, distributor data, subcontractor agreements, sales contracts, unions, labor documents, and other instruments used to legally define the business. If leasing property, you need to determine if it is transferable, how long it lasts, its terms, and whether landlord consent is required for the assignment.
4. Registrations. If the company is a corporation, check which country it is registered in, whether it operates as a foreign entity.
5. Tax returns for the past five years. Many small business owners use the business for personal needs. They may purchase products for personal use and charge them to the business. You should use your analytical skills to determine the actual financial purity of the company’s value.
6. Financial statements for the past five years. Review these statements, including all accounting and financial information and compare it with tax returns. This is especially important for determining the profitability of the business.
7. Sales. Although they will be recorded in financial reports, you should evaluate monthly sales records for the past 36 months or more. Break down all by product categories if multiple items are involved, as well as cash and credit sales. This is a valuable indicator of current business activity. It gives some insight into the cycles the business might go through.
8. A complete list of liabilities. Consult with an independent lawyer and accountant to review the list of liabilities. This determines the cost and legal implications. Find out if the owner has used assets (capital equipment or accounts receivable) as collateral for short-term loans. Also, check if creditors have liens on assets, lawsuits, or other claims. All accounts receivable. Break it down into 30, 60, 90 days, and more. Checking the aging of accounts receivable is important because the longer it remains unpaid, the lower the value of the account.
9. All accounts payable. As with the previous point, it should be broken down into 30, 60, and 90 days. This is important for determining how well cash flows through the company. For accounts payable older than 90 days, you should check if any creditors have placed liens on the company’s assets.
10. Disclosure of debt. This includes all outstanding notes, loans, and any other debts the company has agreed to. Also, look for any business investments in the accounting books.
11. Product profitability. Does the business have high profitability? Has it increased over the past year? If so, can you identify reasons for product returns and fix the issue?
12. Customer data. If this is the type of business that operates on repeat customers, you need to know their specific characteristics—how many first-time buyers; how many were lost in the past year; peak purchase periods; popularity of products.
13. Marketing strategies. How does the owner attract customers? Does he offer discounts, run aggressive advertising, or conduct PR campaigns? You should obtain copies of all documents to see everything.
14. Advertising expenses. Analyze these costs.
15. Price checks. Review current price lists and discount schedules for all products, the date of the last price increase, and the percentage. You can even go back and look at previous data.
16. Industry and market history. Analyze the industry and specific market segments targeted by the business. Determine if sales in the market segment have been growing, declining, or remaining stable.
17. Location and networking site. Evaluate the company’s location and the market around it. This is especially important for retail businesses that rely heavily on the primary trading area. For a service firm, obtain a map of the area. Find out if there are any special requirements for product delivery or transportation difficulties.
18. Business reputation. The firm’s image in the eyes of clients and suppliers is extremely important. As mentioned earlier, a business can be an asset or a liability.
19. List of current employees and organizational structure. Employees can be a valuable asset, especially key personnel. Assess the organizational chart to understand who reports to whom. Study the company’s management methods and find out the salaries of all employees, their tenure.
20. Safety and hygiene requirements. As a potential buyer of a business that may be subject to certain regulatory agencies, you have the right to know about all deficiencies.

Also, find out about insurance. Determine what type of insurance coverage is provided for the business and all property. Find out who is responsible for product quality.

All this will help you understand whether acquiring this business is worth it and if it will be profitable for you.

How to Avoid Making a Mistake When Buying a Ready-Made Company?

It’s very simple—contact our company. We will analyze all the necessary data for you and offer the optimal price. Buying a ready-made company can be quite straightforward if you work with Investmakler. Don’t miss your chance. Conducting international business is very advantageous when having commercial organizations registered in different countries. There are several reasons for this: you increase profits through the financial markets of another country, which will be directly accessible. The company can beneficially cooperate with foreign partners.

Additionally, buying a ready-made company in Hong Kong, England, Switzerland, or other European and Asian countries is prestigious. You will elevate your ranking among competitors and customers.