Purchase an established business in Bali

Conducting a preliminary business audit involves reviewing company documents, verifying ownership, assessing reputation, and providing an initial evaluation of financial indicators and declared assets. A full audit includes analyzing industry trends and competitiveness, conducting detailed financial and tax assessments, obtaining professional evaluations of assets, auditing contracts with partners and employees, and engaging with key stakeholders.

The value of a business is determined through cost, income, and comparative methods. The cost method assesses the price based on asset and liability differences. The income method forecasts medium-term returns on investment using business net profits. The comparative method estimates value based on competitors' offers. The final sale value is established post a comprehensive audit and assessment of all company assets and liabilities.

Determine the purpose of purchasing a pre-established business, considering strategies for active development or passive investment. Choose a suitable management model aligned with your niche. Decide who will manage the acquired business—options include self-management, hiring an experienced manager, or retaining the current manager. Ensure that no critical business processes rely solely on the reputation or personal connections of existing employees before dismissing them.

Businesses in Bali are commonly sold for two reasons. Firstly, businesses initially established for sale purposes, such as residential or commercial real estate rentals. Secondly, owner relocation, particularly in service and food industries where personal presence is crucial. Businesses may also be sold due to adverse circumstances, such as unmet expectations or financial goals achieved, necessitating asset maintenance or lease extensions. In such cases, caution is advised when making purchasing decisions.