Is It Appropriate?

[chelford67]

I am at present looking to purchase a small buisness in Samui and have enquired with the vendor as to, the possibility in negotiating a further lease when this one expires in several years time. I have been informed he will introduce me to the land owner, so I can discuss the possibility in person, prior to making an offer for the buisness.

My question is, would it be appropriate to arrive bearing a gift, such as a bottle of Chivas / Black Label etc, or would this be deemed wrong. Thanks for your comments.

[MrAG]

Not too sure re. gift, but a few comments to consider:

- if you are buying from someone currently renting from the owner of the land/building, make sure their current lease can be subleased for the rest of the rental. Many owners don't allow a lease to be 'subbed' or transfered, meaning you may also have to pay key money NOW to the land owner for a new lease, as well as well as buying the business.

- some leases that can be transfered call for a fee (usually a % of the sale price) to be paid to the owner. If so, who pays, you or seller?

- any lease over 3 years not registered with the land office isnt enforcable after 3 years. A fee of 1% of the total lease value (gross rental x # years) is due when registering. Many owners dont like to do this as they also must add the lease details to the land paper (back) making it impossible for them to sell the land/building until your lease ends (.....yes, they DO that here on occasions!)

- if you get the owner to agree to registering (very tough), expect YOU to have to pay the % fees.

- if a low value is used on the lease to keep the % fee low, ensure the renewal clause has the ACTUAL amount you'll owe in future key money + rent.

- I only know of a handful of regd. leases here.

- any renewal agreement not mentioned on the current lease, and not regd. with land dept. ISNT enforcable. Dont take the owners word that "yes, no problem, I'll give you another __ years"

I would say talk to a lawyer and get things straight from day 1. If not, expect troubles later, especially if you are successful.

You may think this is 'overkill' just to buy a small business, but SO many have been before you and lost (ripped off in one way or another).

(I am not a lawyer so also cant say the above is 100% correct, just to the best of my knowledge).

Good luck!

P.S. re. the gift, not till you get an actual lease!

[Boo]

Q: would you take a gift to a business introduction in the UK?

[chelford67]

Thanks to you both for your answers, they are much appreciated.

To N#1, I will be checking evrything twice and hopefully we have a good lawyer, who appears to be well up on things.

N#2, No I would not, but I am not dealing with English logic, and with past dealings with thais in buisness I presumed this would be a token gesture.

Your points are appreciated.

[sbk]

I asked my Thai husband about this and he doesn't think so, he certainly wouldn't.

[somchai jones]

Q: would you take a gift to a business introduction in the UK?

Not relevant in this case as Thai/Asian business ethics very different from those in UK.

Edited June 19, 2006 by somchai jones

[Boo]

It is relevant IMO, we never offered gifts to any business associates in LOS & wouldn't in the UK. Sometimes your own logic is all you have.

[somchai jones]

It is relevant IMO, we never offered gifts to any business associates in LOS & wouldn't in the UK. Sometimes your own logic is all you have.

I wouldn't dream of doing it in UK but have done it in Thailand and Taiwan. On both occassions the gift in question was a bottle of scotch and the results of the meetings were successful.

Admittedly though I'd never met either of the recipients of said gifts before we met in person, I had spoken with them over the phone.

Other things to take into consideration; the level within the company/organization of the person you're meeting, the nature of the business, etc, but I'd certainly restate the assertion (in my humble opinion) that business ethics vary greatly between UK and Asia (and indeed between individual Asian nations).

Also, a very importan point is that as a westerner meeting Asian counterparts, one doesn't have to follow the same etiquette that would be followed by a Thai meeting another Thai for example.

To summarize, using the UK as a model for what procedure should be followed in a Thai business meeting is of very little, if any use. But hey, let's agree to disagree.

[Boo]

lets