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Here is what you should focus at,

when you decide to sell or buy an existing business in Dubai, UAE.

Many businessmen start a business, especially in a new country, through the purchase of an existing company. In many situations, purchase of a "running company”, no matter if it is through buying of shares from an individual or an organization, requires a lot of experience in the related sphere as well as sound expertise of legal processes and possibilities. The inability to accurately evaluate a company’s economic value and its future expansion perspectives may lead to following dissatisfaction disregarding whether you are a buyer or a seller.


Several things you have to think about, when you consider Sale or Purchase of Business in UAE:

Sale and Purchase of Business in UAE

1. Purchasing or offering a business for sale often becomes crucial in one's life and business. You have to be 100% sure that all your interests and assets are protected by the UAE Commercial Law and comply all its articles at all the stages before, during and after the deal. In order to be on the safe side, prepare all the questions to the counter party and get answers on them. Make sure that you know, what you are going to buy or sell and what is the current and prospect condition of the business. It is essential to highlight all important aspects in the sale-purchase agreement.

2. One of the core elements of such deals is Due Diligence – the procedure of gathering information and investigation of the business's actual value. Are you purchasing a business which the owner says has a large number of contracted clients? If so you need to have a professional to check that those contracts are in place, and are not easily terminated.

3. Both the seller and the purchaser should use a professional advisor, who can assist them in creating, reviewing and amendment of the sale-purchase agreement. to educate them on the deal with respect to business acquisition. In most cases the seller’s lawyer or advisor drafts this agreement and the buyer’s advisor reviews the document. If necessary the lawyers can then assist with the negotiation process.

4. Despite the fact that there are numerous important provisions that should be reflected in a sale-purchase agreement, we can distinguish the most common of them:

  • What business is being sold/purshased and what assets is included in this deal,
  • How much the business will be sold for,
  • Terms of payment, protection of the seller's interests,
  • Protection of the purchaser in case of providing of initially false information about the business and other cases,
  • Non-competition and non-solicitation statements.

5. A non-competition and non-solicitation clauses are necessary to protect the buyer's business purchase. You need to ensure that the seller cannot set up a new business, close to you, with a similar name, and try to take their old clients and/or staff.

Contact us and we will give you a professional advice on how to protect your interest, when buying or selling a business in all Emirates of UAE!