Hong Kong is one of the easiest places in the world to do business. There are world-class infrastructures, highly skilled workforce, favourable tax rates and incentives, and a strategic location, all of which can contribute to help grow a business like nowhere else.
If you are looking for a business for sale in Hong Kong, you need to make sure that you are investing in the right firm. These are some things you can check to ensure that you buy the right company.
The Seller’s Reason for Selling the Business
You can create a questionnaire to ask the seller and the broker. They should be able to give you a valid reason for selling the company. Ask them a series of questions, and it is a red flag if there are conflicting answers.
The Confidentiality of the Selling Process
Another thing to be careful of while choosing a business for sale is if the process is going to be a secret.
It may give a negative message to the customers, suppliers, followers, and employees if everyone finds out that the ownership of the company has changed hands. So, even after the buying/selling is complete, you should try your best to keep it confidential for as long as you can.
The Verifiable Price
The thing is that you don’t pay for potential, but for the profit. It is a good idea to only invest in a company with proven records of income. Also remember, revenue and profits are different things.
Well, the rate at which the company has been scaling is also a factor for deciding the price. So, it will be a great idea to have an assessment done by your own business advisor.
If the seller is taking help from a business broker, ask the broker if they provide any buyer’s funding.
Legal Documents
Companies need to acquire various licenses in Hong Kong depending on the nature and the type of business they do. Furthermore, businesses will also need to file taxes regularly, and actions will be taken if they don’t pay all of their taxes. You should hire a legal professional to ensure that the company has never broken the law.
