Fig. 1: Important things you should know if you are interested in Selling a Business in Dubai Blog
As the United Arab Emirates economy recovers and grows after the recession, so does the selling of businesses in Dubai. There is an endless number of those in Dubai, who wish to sell their businesses and those who would like to invest in businesses through purchasing them. Dubai is a well-known business location and there are several businesses available for both sale and purchase at any time of the year.
Fig. 2: Sale at any time of the year – Important things you should know If you are interested in Selling a Business in Dubai Blog
It is important to take time to carefully consider your decision if you choose to sell your business. Firstly, one needs to take a look at your goals and the potential for the business’ growth within a span of a few years. Before going ahead with selling, it is better, to begin with consulting a professional who has experience in these types of situations. Consulting an expert will greatly help with staying within the rules and regulations of the country and such help should be found beforehand, to ensure profitable returns.
The UAE has an ever-expanding market and promising locations for businesses of different kinds to experience considerable growth. With the country’s market looking to focus on areas other than oil, opportunities are opening up for business aspirants. While some may want to start businesses, others wish to buy businesses in Dubai, where there is no shortage of businesses.
There are also businesses being sold due to various reasons. These businesses may have failed, they may have run out of funding, or the owner may have wanted to start on other opportunities. There are several businesses available for sale in Dubai which includes small as well as big businesses. Buyers usually have to search for the best business opportunity, in order to be part of the country’s market.
Whether it is buying or selling a business in Dubai, some points need to be kept in check and need to be followed in the right manner to ensure a smooth process.
How to go about the process of Selling a Business in Dubai?
Fig. 3: The process of Selling – Important things you should know if you are interested in Selling a Business in Dubai Blog
Just as there are people interested in buying businesses, there are also those who want to sell a business in Dubai. There are many factors to consider when you think about selling a business.
- Know when it is the Right Time
You may be interested in selling your business, but have you considered if it is the right time to be selling it? Selling a business at the right time may mean a considerable difference in the investment returns you get after spending your resources on it. It is recommended that you conduct checks on the current market and assess how much of a profit your type of business will generate. Due to the ongoing economic situation is it advisable to seek assistance during such an important process, so that you can make the most out of your investment.
- Research on the Value of your Business
Before starting the process of selling your business, it is important to know the current value of your business to know how much of your investment funds will be recovered. It should be understood that you will not recover the full amount that you had invested in the beginning stages of building the company. However, if your business has been doing fairly well, one can expect a decent return on your investment.
Learning about the value of your company is crucial to the procedure of selling your business. This is where hiring business consultants come in to provide an accurate assessment of your business’ assets, revenue and cash flow. Depending on such factors in your company’s assessment, an accurate estimate of the value can be made when selling a business in Dubai.
Having such as assessment made on the value of your business ensures that there is neither an undervalue nor an overvalue on the financial worth of the company.
- Prepare your Financial Documents
During the process of selling your business, your buyer will need to be informed of a good deal of information. This includes knowing the income and expenditure of the company, therefore, getting the income and balance sheets in order is part of the procedure. Profit and loss statements for the last 2 to 3 years have to be provided. Various other documents such as balance sheets, business tax returns, insurance policies and more need to be given to potential buyers so that they can determine whether the business is worth their investment or if it may fail in the future.
Some important documents to be prepared for your business are the executive summary and the original Dubai license of your business. The executive summary involves specifications, running period and other necessary details. The purpose of this piece of paperwork is to give the prospective buyers some insight into the business.
Providing accurate and original documents to a prospective buyer is important in building trust so that you succeed in selling your business. It is equally crucial to provide all the required documents to the relevant government authorities. When you engage the services of a professional business consultant for selling a business in Dubai, such matters are taken care of to ensure that even the slightest mistake does not take place.
- Negotiation Processes
When you finally decide that you wish to sell your business, it is important to prepare yourself for the process of negotiation or discussion of the price. At this point, one must remember the worth of their business, in order to get a fair price. before going any further, it is important to ensure that you enter into the negotiation process prepared. This means that you need to find the right advice and the best way to do this is through finding professionals that are experienced with business transitions. With professional business consultants, you can screen the buyers for the best offer.
Fig. 4: The Negotiation Process – Important things you should know if you are interested in Selling a Business in Dubai Blog
- Regulations and Rules
It is important to keep in check with the authorities when conducting such commercial activities in the UAE, more specifically when selling a business in Dubai. The rules can get confusing and complicated, therefore, it is better to seek the advice of professionals during the entire process to avoid making mistakes. Professional business consultants will guarantee that all regulations are followed as they help you sell your business.
- Advertise the Sale of your Business
The final step of the selling process is to advertise your business, to gather interested buyers for the company. There are several options available today such as local newspapers, business publications, business journals, television and online advertisement options. This is a good way of finding a possible buyer for the company.
While some options are more on the costlier side than others, they are worth the effort, as they make it easier for others to find your business for sale. Consult your financial advisors when you think that you have found a potential buyer for the business.
Professional business consultants are capable of providing the assistance needed to sell a business. They will have a deeper knowledge of the industry as well as better strategies for advertising the sale, thus, offering you an advantage.
Given the previous factors, it is understood that selling a business in Dubai is no simple task. Thus, one should preferably seek help from experts and professionals when going about the various procedures. Hiring professionals that are capable of providing the best assistance possible will guarantee that the process is carried out smoothly and without any mistakes.