Questions & Answers
Precautions to be taken upon acquiring a factory
Dear sir/madam,
I plan to take over the entire stuff of the factory, premises, and customer transmission but not the trade license. I shall be taking my own new trade license and using existing premises, equipment and workers too (by changing the visas).
It is more or less like taking over all the CAPEX and headcount. The trade license has not been taken over and the factory name shall be changed.
In this scenario, what type of precaution need to be taken? And what kind of purchase agreement is to be made?
Hello,
Please note that there can be different options. As you are acquiring the CAPEX and only the headcount, if it is your own business, where you are liquidating the existing business license, it is a different scenario.
If you are acquiring any other's license then we have to see, what will be the share in the MOA of the license as per the existing owner. Then there can be a side agreement.
Please let us know accordingly!
Dear questioner,
Pursuant to the query, you have to take care of so many factors before taking a company.
You should be aware of their liabilities, the value of their assets, any pending salaries, their statement of accounts, their obligations, etc.
Kindly contact us via phone to discuss your matter in detail.
Thank You!
