Indeed, Singapore is a country that gives immense benefits to help businesses flourish. From numerous international trade agreements to tax benefits, the country has a robust and favorable business ecosystem. Of late, it is gaining popularity among FDIs.
With such an upper hand, businesses in Singapore can enter into good business deals. Here are the five steps in selling your business in Singapore.
Five Easy Steps to Sell Your Business in Singapore
Based on the business entity, buyer-seller urgency, industry, and legal procedures, the sale may take up to 3-4 months on a minimum scale. And even a year on a maximum scale. However, these are the major steps involved in selling your business in Singapore.
This step includes the sale prerequisites activities of the seller. Like getting the financial reports and sheets ready. Or adjusting the assets or liabilities. Trusting an accountant who is specialized in acquisitions can help with these activities for the seller.
The second step in selling your Singapore business involves scouting for the right buyer. The potential buyer of your company can be one of your staff, sister concern, friends, or family. Post the first level of discussions, you can shortlist the buyers.
The next step is to enter into legal contracts and respective agreements. Major ones include:
- Non-Disclosure Agreement (NDA) or confidentiality agreement
- Letter of intent (optional)
- Memorandum of Understanding (MOU)
These legal documents shall include all sensitive and significant information about your company.
Now comes the buyer-end activities such as:
- Examining the company data
- Analyzing the viability, possible revenue, opportunities, etc
- Sale price, terms, disclaimers, etc
In this last step, the seller finalizes the right buyer based on their willingness, negotiations, and acquisition terms & conditions. Later, both parties enter into a mutual buy-sell agreement with the help of legal advisors and accountants.
Selling a Private Limited Company in Singapore
A private limited company can easily transfer ownership or sell the company by just selling the shares to the chosen buyer. However, with partnership firms, the same is not possible.
GBCorp’s Buy-Sell Assistance
Effortlessly buy or sell businesses in countries like Singapore, the UK, the USA, Australia, etc with the help of GBCorp. With their established process & network, they can do the heavy lifting. And work on behalf of both the buyers and the sellers.