How do we check companies before selling?

 14.06.2024

Checking a company in Vietnam before selling it is an important step that helps both parties to the transaction minimize risks and ensure its success.

Today we will talk about how we check companies before selling:

Financial audit of a company in Vietnam

We start, as always, with money. And to be precise, from financial analysis. This includes assessing income, expenses, profit and loss, balance sheets, tax liabilities and credit reports. We have enough expertise to fully diagnose the company.

What assets and liabilities does the company have?

Once the money picture is clear, let's look at the presence of assets and liabilities.

This concept includes inventory, real estate, equipment and, of course, debts. It is our responsibility to ensure that assets are worth their value and that liabilities are fully documented.

Checking company documents

Well, now is the time to check the correctness of the documents. All documents, including articles of association, contracts, licenses and patents, must be in order. We check for any lawsuits, claims or disputes. This process is not quick, you need to be patient. These circumstances can only be clarified through inquiries to the relevant authorities, usually about a month.

Client base and contracts

Analysis of the customer base, long-term contracts and orders. This is important in order to understand that customers will remain after the change of ownership. As well as the presence of incomplete or unfulfilled contracts. If so, what stage are they at? Developing an option for closing such contracts or transferring them to a new owner.

Verification of company employees

One of the most difficult stages is assessing the qualifications and motivation of existing staff. Find out what employment contracts have been signed. And also which employees can remain after the transaction and which can leave the company.

I don’t see any point in buying a business that doesn’t represent itself in the market. We take on sale only those companies that clearly monitor their reputation and brand: Analysis of the brand, customer reviews and feedback is an important step on the path to the future development of the company with a new owner.

Competitive Analysis

We carry it out at the buyer's request. However, it is dangerous to downplay its significance. Knowing the company’s position in the market, as well as its competitiveness, you can maximize the company’s strengths and neutralize its weaknesses compared to competitors.

It happens that a business based on technology or intellectual property is sold. In this case, we attract experts from those niches with which technologies are associated. However, in this case we are responsible for them as for ourselves.

Conclusion

The final stage in preparation for sale is the conclusion, which we provide to the seller for approval. And the buyer subsequently works with this conclusion. As a rule, we do not miss the opportunity to prescribe a possible strategy for the future development of the company, as well as the potential risks of such growth.

Let's carefully choose a field of activity that will give you amazing opportunities to achieve stable growth, prosperity and increase your investments!

You can book a consultation by following the link below.

How do we check companies before selling

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