Questions & Answers
The proper procedures to check the history of a mainland company before buying it
Hi Mam,
I am planning to buy an existing 13 years old mainland company in Dubai. Since it is a very old company, it might bring along a variety of issues with it as well.
For a couple of years, it has not been very much operational and its financial records don't seem to be good either.
My question is how best can I safeguard myself from previous litigations and legalities that the company may have?
Your expertise and advice are greatly required.
Dear Client,
Good day!
We strongly advise you to do Due Diligence which confirms how many cases it has? Are there execution orders against them? Is there lenient in the property? Is there any criminal/civil case against the owners/manager of the company, or any other criminal or civil complaints against the company; all these things have to be clarified first.
So once the Due Diligence report confirms everything, then you can proceed with doing an Audit Report from any of the Court Listed Auditors, we can assign any one of them for you to do the Audit report.
Once the Audit Report also comes in our favor, then we can proceed accordingly. We will prepare all documentation related to the acquisition of the company and the acquisition document should clearly specify the rights and responsibilities of all the partners involved in it.
I would strongly suggest that the partner who is responsible, who took over the company, you should not remove him as a partner until we advise you of the strategy once you decide to proceed further with a way to protect yourself.
For further assistance, please feel free to contact us via phone or email.
Thank you!
