Things to consider before acquiring a business in Dubai
Business acquisition is a common practice in UAE and Dubai among business owners who want to see a substantial increase in their business’s value. Business acquisitions usually occur for the enhancement business processes for a visible escalation that can drive more sales and prominence for the company. A number of Dubai-based firms have either merged or become a part of business acquisitions. If you are looking forward to acquire a company in Dubai, here are a couple of things that you must consider before making the decision.
- Hire a CPA or a financial consultant: The first and the most important thing to consider when it comes to acquisition is your financial situation. Business acquisition in Dubai is pretty much equivalent to company formation in Dubai; you have to follow a similar path with a few exceptions to garner the shares of your acquired company. Therefore, it is crucial that you have financial consultant, at least a CPA certification holder, on board to help you gauge your financial situation for a detailed financial analysis that would help you make a better decision.
- Hire a business consultant: The business acquisition process can be a challenging venture for business owners who are dealing in Dubai for the first time. There are a lot of important decisions that you have to make to ensure a smooth transition.
One important thing is the business loans. You have to see if the company to be acquired has any debt or loan payments that need to be clear before it can be acquired. In Addition, you have to make sure that the company to be acquired offers a perfect opportunity for a business scale up. You can’t always know everything about business acquisition and its processes, which is why it is important that you let a professional business consultant analyze businesses for you.
- Know the Market and the available opportunities: Business consultancy firms like IBGme offer myriad services that can help you understand the market in Dubai better before taking a step towards acquisition. A thorough market research and feasibility study needs to be done before you can think about acquiring firm for business formation in Dubai, and only a professionally trained business consultant can help you with this process.
- Don’t proceed without Due Diligence: Business acquisition can be tedious and time consuming. Your business consultants can help you get started with the process by highlighting the major factors that you need to consider; however, there is a strong need for homework on your end. Nobody knows your business goals and objectives better than you, so you have to make sure that your decision for acquiring another firm is going to serve your business right.
- Acquire assets not liabilities: Last, but not the least, while making the acquisition decision make sure that you acquire the company’s assets not its liabilities. This is why business consultancy is extremely crucial for this process; let your business consultant deal with the legalities of the process.
If you are looking to acquire a similar business in Dubai, make sure that you consult with a business consultant first to make sure the acquisition is going to be healthy for your business. Invest in consultancy to avoid pitfalls!