Buying An Existing Business

[chaiyapoon]

<{POST_SNAPBACK}>

[/quote

Bear one thing in mind, Thais don’t sell successful business’s !

<{POST_SNAPBACK}>

Keep hearing this one! Sounds like another of those famous sweeping generalisations!!

There are thousands of reasons why someone would sell a business successful or not.Not least retirement,change of direction,need of cash for family problem,partnership dispute,ill health.Why are these not applicable in Thailand?

Edited July 22, 2005 by chaiyapoon

[capco1]

I would say the main reason is because when Thai's own a business that's showing a comfortable profit the majority of the time the business is either taken over or sold to another member of the family! There may be exceptions but not the norm.

In regards to the op saying that his wife owned basically everything they have in Thailand, I would say by all means... buy her that coffee shop and let her roll!

She sounds like a really sharp business woman already!

[ThaiPauly]

In regards to the op saying that his wife owned basically everything they have in Thailand, I would say by all means... buy her that coffee shop and let her roll!

She sounds like a really sharp business woman already! 

<{POST_SNAPBACK}>

About 8% of my total wealth . The rest is either Offshore or tied up in Property in the UK

[capco1]

Happy to hear that I was a little concerned about you!

By Thai standards I'd say she hit the Lotto!

[Harmonica]

In regards to the op saying that his wife owned basically everything they have in Thailand, I would say by all means... buy her that coffee shop and let her roll!

She sounds like a really sharp business woman already! 

About 8% of my total wealth . The rest is either Offshore or tied up in Property in the UK

Karnal, it may very well be only 8% of your total financial wherewithal, but to her it is an entire "continent of wealth" -- the kicker is however, that due to your slovenly discipline, you could be dealing with a 110% hit to your mental wealth -- if she decides to walk the walk, thereby launching you into orbit! Dig?

[Heng]

I would say the main reason is because when Thai's own a business that's showing a comfortable profit the majority of the time the business is either taken over or sold to another member of the family! There may be exceptions but not the norm.

True. I think the focus is more often on getting the location, and not as much the existing business. Like when choice lots come up for sale (seng actually) in Chatuchak. No one cares what was sold there before and talk of the previous owners profit is irrelevant. The main thing is what you yourself are going to do with the lot, and the focus should be on negotiating the price of the lot itself (how much time is left on the original lease, will you be able to get another 20 year lease on it, etc.).

[udon]

Pauly, I have this cunning plan......... only cost you 1mill bt........ ever been to Nigeria?

[Sunbelt Asia]

Best of luck with the new business.

We do due diligence on businesses, other than ones listed with us. Our professional fee on a business worth 1 million or less is 5,000 Baht plus Vat.

We have a full staff of 15 lawyers and have handled well over 500 business transfers for our clients and private sales for other clients. Our professional fee for an asset purchase agreement which covers such areas as Non Compete, Non Solicitation of Employees, Walk-Through of the Leased Premises, Accounting and Auditing Matters, No Sale or Encumbrance of the Company’s Assets, Post-Closing Management, Training, etc. The fee for drafting the contract is 9,500 Baht in English or Thai. Add 4,000 Baht for both versions.

If you decide to use us, please bring a copy of the expenses to our office. This is one of the main ways we check if the numbers can pass a sanity test. Hint typical coffee shops have a COS of 20% ( 25% if they sell snack food) Hence we contact the supplier and do a cross check to see if they are within reason. Subtract the inventory they have, multiply by 4 and you'll have a good gross sales #. Compare this to the seller’s numbers.

How does their daily entries look? Different ink with some tattered pages or just written in?

Just a couple things we look for when doing due diligence.

www.sunbeltasia.com

www.lawyer.th.com

[capco1]

Like I said in the very begining of this post....If you need surgery...would you operate on yourself? Do yourself a huge favor and contact Sunbelt Asia!

[ThaiPauly]

Its a done deal now, I will keep all the naysayers posted. uUon I m very surprised at your comments. Yeah if I have a mil I will give it to some Nigerian Lawyer-yaeh right, this was a seious post.Harmonica, I exxpect nothing less bullshit as expected. Capco if you sggset uing SBA that is your right to suggst and is appreciated, I wont be though.

Topic Closed. I apprecaire EVERYBODY'S imput Thank you all

Cheers

TP

[JimmyGreaves]

Good Luck TP, wising you success success success and more of it. enjoy your business venture.

John

[donx]

Good luck ThaiPauly. I hope your idea regarding selling sandwiches works out. When I was recently in Koh Samui, I was so greatful for finding a small stall in the Tesco Lotus eateries selling western sandwiches. When I visit Chiang Mai again, I hope to try one of yours! Let me know the name of your business and where it's located.

[Boo]

closed the topic as per thaipaulys request

and what a waste of a 1,000th post