Here’s the list for you;
- Define Your Objectives
You must determine the maximum total investment in the business, your role in the business, required payback period and return, type of business to consider, and its preferred location.
- Proper Research
To buy a business in a foreign land it is extremely important to have a sound knowledge about the place, people, culture, and language. So make sure you do enough research about that. It is equally important to learn the etiquette. You must abide by the rules and regulations it has for the foreigners.
- Sourcing Businesses
If you are great at networking, then finding a business for sale would be quite a straightforward process for you without the help of a broker. From expats, businesspeople, to many natives, may want to sell their business. Someone who is capable of doing independent research can easily find one.
A good way to begin the search is by starting with online listing. There are many Thai websites where the businesses are advertised privately.
- Evaluating Business
To ensure that you don’t pick up a wrong business it is important to evaluate it well. The businesses that are displayed “for sale” often have owners who are desperate to sell them. So be a little careful. Only if you see any potential in one of these businesses, consider only then.
It is suggested to ask a Thai colleague to deal with the Thai owner of the businesses or you can simply take reference from him.
- Purchase Offer
Analyze how much the business is worth to you? Try this formula;
Offer price = (Payback Period [years] × Adjusted Net Profits [real earnings] – Additional Costs)
Where the payback period defines the maximum tenure to recover the total investment, additional costs include refurbishment of the property, replacement of the furniture and devices, and advances made to the landlord.
- Due Diligence
This is crucial to get detailed information about the business. You just can’t buy anything. Conducting due diligence will help you to know if the business you are buying had any dispute.
Now that you know how to buy the right business, happy buying!
