Useful tips before buying a ready business in Malaysia

Business doesn’t go always with the luck for some people. Many entrepreneurs therefore choose the quit their business and plans to sell it to more efficient clients. Such options are available in Malaysia. But there are various creeks and processes to handover a business from one hand to the next. This article therefore, highlighted few tips that you need to keep in mind before buying a ready business in Malaysia.

Here are some important tips you should know beforehand when planning to buy a ready business in Malaysia:

  • Know the ways of business purchase

There are two way of purchasing business in Malaysia. It can either be Asset purchase or Share purchase process. Both have its pros and cons. It is advisable to understand both of these ways before proceed forward for purchasing a ready business in Malaysia

  • Evaluate and Research the business

A very important task when ready to buy a company in Malaysia is to research the company background at the beginning. You need to know the business and the company you want to buy. Right business needs to be chosen or all the investments and efforts will go in vein.

It is necessary that as a going to be owner, you must know the nature of the business you are planning to buy. This will eventually assist you in knowing the history of the company better and will allow you to re-work in accordance of that past record.

  • Know the market value of the business

Get information about the real value of the company you have an interest to buy. If clear data is not found ask for it from the owner him/herself and if necessary cross check with other similar competitors in the town. Acknowledgement on company value is mandatory as it gives a proper idea about the company. It facilitates proper valuation of the company.

However, it often occurs that the seller offers an overprice tag for the company, which is far more different then the real market price. So, it is mandatory to carry out proper evaluation when properly valuating the company.

  • Study all paperwork and documents

You must do your homework before finally signing any deeds or legal paperwork. It is also known as due diligence. Due diligence as vital as it opens up all terms and conditions that is mentioned in the deed of company’s handover.

 Some clause may go against your agreements, some may have altered unethically or without your concern. There might be some agendas which might make you re-consider the whole deal. Therefore, study all paperwork and document in detail before buying the company.

  • Know the seller

Before buying a company or business in Malaysia you need to observe the seller or previous owner of the company in depth. The aim is to make sure that the seller is genuine and the business he/she is selling has no legal issues or complications that may lead you to trouble. It is necessary to purchase such a big asset from a reliable source. This mitigate any legal or unexpected issues that may ruin your business career and shows great loss.

Related Article: How to become a successful entrepreneur in Malaysia?


Company Registration Expert Since 2012