Why Do You Need an Accounting Firm’s Help While Selling a Business in Dubai?
Having a robust exit strategy is an essential aspect of doing business in Dubai. Selling a business is one of the most commonly used exit strategies among entrepreneurs. The reasons for selling a business may include retirement, no successors, a plan to pursue new opportunities, financial troubles or personal obligations. In addition to that, many entrepreneurs run a startup only to sell it to potential buyers at a certain point in future. The reason for selling a business may vary but availing the assistance of accounting firms in Dubai is inevitable.
Since a robust strategy is a must, doing everything by yourself is not a feasible option. You need to have the best accounting services in Dubai to make sure the exit is worth the price. Take a look at the following facets to understand exactly how an accounting firm can help you:
Determining the Actual Value of your Business
While selling a business, the primary and most important question will be ‘How much is the business worth?’ You will have some expectations or a specific number in your mind. However, you need to ensure whether your business is worth the price you have in mind. To determine the value of the business, you need to assess the assets you own, the liabilities you owe, and what will be included in the sale.
Also, you will have to determine the value of each individual assets and liabilities. Being a busy entrepreneur, you may miss out on important liabilities, and also fail to assess the business performance in relation to the market conditions. Such mistakes will prevent you from selling the business at a good price. Accounting firms in Dubai can act as your financial adviser and help you in determining the accurate picture.
Organize and Structure the Deal
The sale of a business may assume different shapes in the corporate world. It could be a merger between two similar companies, the takeover of one company by a large Multi-National Group, or the formation of a new enterprise. The sale deal may include your company’s assets such as intellectual property and equipment, majority stock ownership, equity, or a combination of all.
Here, you will have to find out out what kind of a deal structure will help you fetch the best price with minimum complication. It will be a tough task if you lack proficiency in such intricate financial matters. The buyers will take advantage of your lack of knowledge, and you will be left with a less profitable deal. The assistance of accounting firms in Dubai will save you from such costly errors and help you make informed decisions.
Reduce Tax Complications
Tax obligations can create complications while selling a business. For instance, the sale of assets by a taxable person is considered a taxable supply and therefore subject to VAT in the UAE at the appropriate rate. However, in certain instances, the supply of specific assets may be exempt from VAT.
Accounting companies in Dubai will help you to estimate the taxes accurately, organize VAT records & documents, examine tax return filings, and ensure everything is in compliance with the existing regulations. The sale of a business involves millions of Dirhams and you can’t afford to go wrong with the taxes.
Risk Evaluation of Potential Buyers
When it comes to selling your company, negotiation is not the only metric that warrants attention. You need to know who you are selling the company to. Robust due diligence is required to ensure that you are selling your entity to the right group. Accounting firms in Dubai can help you by undertaking the due diligence process.
Robust accounting services will enable you to assess and assign measurable values to each of the risks that accompany the selling process. A prompt assessment means you can eliminate the problems that may arise due to decisions based on emotions. An accountant’s viewpoint helps you make logical decisions that are in your best interests.
Make your Exit Profitable with Jitendra Chartered Accountants
A robust strategy is required to sell a business that you started and made to grow. The process may consume time and drain your energy but enlisting the services of accounting firms in Dubai makes it easier. A reputed accounting firm such as Jitendra Chartered Accountants (JCA) can act as your financial and legal adviser and even offer services post the sale.
We can help you strategize your selling plans to ensure your exit strategy is successful in terms of financial gains. Whether you are planning to sell your business or you need help with financial management, connect with our accounting and bookkeeping experts at JCA. JCA will take care of your tax filings, books of accountants, and audits to ensure that the company is in good standing.