Sell my business in United Arab Emirates (UAE)

Photo Sell my business in United Arab Emirates (UAE)

Parting ways with a business you’ve poured your heart and soul into is never easy, whether it’s a carefully planned departure or a sudden turn of events. While some entrepreneurs wisely weave an exit strategy into their business blueprint from day one, using it as a compass for growth, others face the unexpected necessity of selling due to unforeseen situations.

The article will lead you if you are pondering about selling business in UAE.

Timing is Everything: When to Sell Your Business

Deciding when to sell your enterprise is a crucial decision driven by your personal goals and your business’s health. 

The Ideal Scenario:

The optimal time to sell is when your business is thriving, and you’re not pressured into a sale. This puts you in a strong negotiating position and attracts better offers. 

Planning is Key:

Don’t rush the process. Prepare your enterprise for sale well in advance by addressing any potential issues that could deter acquirers. This might involve conducting your own due diligence to identify and rectify weaknesses or restructuring aspects of your operations. 

Avoid a Fire Sale: 

Going to market when you’re scrambling to fix problems or appear desperate can significantly hinder your chances of a successful and profitable sale.

Sell business in UAE: Prep is a key

Almost any enterprise can be sold, even if it’s not performing at its peak. The key is proper preparation. 

This means:

  • Accurate Valuation: Determining a realistic asking price that reflects the current mart and your business’s worth.
  • Strategic Marketing: Effectively showcasing your business’s strengths to attract possible acquirers.
  • Preparing for Sale: Addressing any weaknesses and ensuring the business is running smoothly and, ideally, profitably.

Before listing your business, take the time to review all operations, identify areas for improvement, and implement necessary changes. This “presale tune-up” will significantly increase your chances of a successful sale.

How can I sell my company in the UAE?

Here’s a concise guide to navigating a business sale in the UAE:

1. Initial Steps:

Confidentiality is Key: Confidentiality and Non-Solicitation Agreements with ALL parties (buyers, advisors) is required. Have your lawyer draft these to protect sensitive information and prevent employee/client poaching.
Assemble Your A-Team: Form a team of internal management, lawyers, financial advisors, and industry experts. Define clear decision-making authority within the team. 

2. Transaction Essentials:

What’s on the Table? Decide if you’re selling shares, assets, or the entire business. Clarify ownership structure and how title will transfer.  
Structuring the Deal: Will it be a direct sale, auction, or management buyout? Is the buyer acquiring directly or using a separate entity? Identify any legal restrictions on the sale (e.g., foreign ownership) and address them proactively. 

3.  Due Diligence Prep:

Data Room Essentials: Set up a secure online data room containing all crucial documents for buyer review. Have a dedicated person (lawyer or advisor) manage access and respond to queries.

4. Pricing and Payment:

Know Your Worth: Get a professional business valuation to determine a realistic asking price. 
Payment Structure: Decide on cash, shares, or other assets. Outline clear payment terms, milestones, and any earn-out provisions. Consult tax advisors to understand implications.

5. Approvals and Timeline:

Realistic Expectations: Factor in time for due diligence, negotiations, government approvals (DED, licensing bodies), and third-party consents (landlords, suppliers).

6.  Records in Order?

Due Diligence Demands It: Ensure all financial records, contracts, legal papers, and employee records are up-to-date and organized.

7.  Management Transition:

Smooth Handover: Determine if any management team members will stay and on what terms. Communicate transparently with employees about the sale procedure to address concerns.

How can I market my business in UAE?

Here’s how to get the word out and attract clients when you put up a business for sell in UAE:

Online Presence is Key:

Website: Your digital storefront. Make it informative, user-friendly, and mobile-optimized.
Social Media: Engage actively on platforms relevant to your target audience (Instagram, LinkedIn, etc.).

Paid Promotion for Faster Reach:

Online Ads: Target your ideal customers through Google Ads, social media ads, and industry-specific platforms.

Don’t Forget Offline:

Networking: Attend industry events, trade shows, and business meetups.
Print & Outdoor: Consider flyers, brochures, local newspaper ads, or billboards depending on your target market.

Experiences Matter:

Events:  Host workshops, product launches, or networking events to create buzz and engage directly with customers.

Can I move my business to Dubai?

Yes, you can transfer business. To do this you will need to go through the following steps:

1. Identify the specific license category your enterprise falls under, as there are six main types.
2. Secure and register your chosen business or trade name.
3. Make a submission to the relevant authorities and await their preliminary approval.
4. Certain business structures may require drafting and submitting a Memorandum of Association (if applicable).
5. Depending on your industry, obtain any additional approvals from specific government bodies (if applicable).

Can I sell online in UAE?

Yes, but operating an enterprise here without the proper licensing is illegal. To conduct e-commerce activities (buy and sell business in UAE), obtaining a dedicated e-commerce license is mandatory.