There are many reasons to sell your business in Bali. Reasons for selling your business in Bali could be retirement, illness, loss of partner, boredom, or partnership disputes. You may also want to sell your business because it doesn’t generate any profit.
However, you need to be prudent on providing this reason to your buyer as this could make your business unattractive for sale. Do wait for the right timing and look into the potential of your business to make your business more alluring.
But whatever the reason is, consider the 7 things listed below before selling your business in Bali.
What to Prepare before Selling Your Business in Bali
1. Know the Reasons for Selling Your Business in Bali
First of all, you need to know the reasons for the sale of your business. Don’t be surprised that this is also the first question a potential buyer would ask. Is that one of the reasons we have just briefly discussed? Or a combination of a few reasons?
2. Get a Valuation for Your Business
After knowing the reason to sell your business, you need to determine how much your business is worth. Pricing your business too high or too low are both not ideal when it comes to selling your business in Bali.
Get help from a professional appraiser to obtain a valuation of your business. The appraiser will then provide you with a detailed report to help set your listing price.
3. Seek Consultation with A Financial Advisor
To have a well-informed and successful transaction, it is often a great idea to seek advice from your financial advisor. A credible financial consultant can help plan your future financially as well as serving as your tax advisor.
With professional help, you can understand your tax situation and know what your options are for a more profitable sale.
4. Prepare Legal Documents
Get ready for all legal paperwork such as financial statements, tax returns, incorporation documents, licenses and permits, contracts and agreements, leases, and customer details. Then, review these documents with a professional accountant and legal consultant.
Make sure that you have copies of these documents and they are readily available and organised for your potential buyers.
5. Find and Identify a Buyer for Your Business in Bali
Getting the right buyer can be challenging. So when it comes to attracting more prospective buyers, don’t limit your advertising and outreach channels.
Once you have identified your potential buyers, keep the process going by staying in touch with them. Then, filter those buyers and seek further advice from a legal consultant and an accountant to work out the agreement.
Do provide your buyers with some room for negotiation but don’t price your business too low – you need to consider the future worth of your business in Bali.
Depending on your circumstances, you may want to sign a non-disclosure and/or non-compete agreement with the buyer.
6. Conduct Due Diligence
Before closing the deal, there is one more thing you need to do. That is to do a detailed background check or due diligence on your prospective buyers.
A due diligence service provider will be able to assist you and provide you with a full report regarding the buyer’s financial history, criminal records, etc.
You don’t want to have a buyer who is unable to pay for the sale or can potentially cause harm to the people in your company.
7. Manage the Profits
Profits gained from the sale of your business in Bali should be well-managed. Don’t spend them immediately. Try to set your financial objectives and talk to your financial consultant about possible investments, debts clearance, and tax consequences of this significant amount of profits.
Cekindo as Your Financial & Legal Advisor in Bali
Cekindo is an Indonesia-based international legal and business consulting firm for starting or selling your business in Bali.
Established in 2011, we have our goal set at offering world-class financial and legal advisory throughout Indonesia and other countries in Southeast Asia such as Vietnam.
We will take care of all the legal document preparation, process, buyer’s search, due diligence, and other related tasks.
Our company has grown to become one of the largest legal and business advisory firms in Indonesia, with a sizable team of the brightest and most professional legal consultants. These specialists are specialised across several practice areas and industries to guide you in the best way to operate or sell your business in Bali.
Meet our legal experts and discover your options. Fill in the form below.