People who become entrepreneurs know that there are many uncertainties in this exciting journey. They also understand that sometimes buying or selling a business is unavoidable in the process when things happen.
Therefore, whatever your ability to handle unprecedented events, it is a good idea to consider a buy-sell strategy right from the start.
When buying or selling a business in Bali, it is important to have an accountant and a lawyer present during the buy-sell transactions.
This guide outlines why you should engage with both of these professionals for your entire buy-sell process.
The responsibilities and functions of a lawyer in a buy-sell process are multiple, such as contracts, interactions, transactions, and documentation. Among all these, the most vital use of a lawyer is to make sure that the whole buy-sell transaction is valid and legitimate.
When selling a business in Bali, a lawyer will collaborate with other experts to determine the company value along with its existing assets and liabilities. After the determination, they will present this information transparently in a way that is positive to a prospective buyer.
On the other hand, when buying a business in Bali, the lawyer’s task is to carry out due diligence for the buyer to make an informed purchase decision.
A lawyer is also necessary for drafting contracts or agreements, as well as editing agreement terms that are beneficial for both parties.
So it is obvious a successful buy-sell transaction will not be possible without the involvement of a professional lawyer.
An accountant supports a lawyer during a business’s buy-sell transaction.
An accountant is to keep all the accounting data related to all financial matters up-to-date and provides these data for a lawyer for analysis. That includes employee payroll, vendor payments, client payments, taxes, and others. Tax violations are not unusual for businesses without an accountant when dealing with buy-sell procedure.
When buying or selling a business in Bali, an accountant can analyse reports and statements, identifying company assets and inventory that are important for potential buyers to understand.
Also, an accountant will have detailed documents that tell the buyers about the company structure and tax conditions.
Other than having an accountant and a lawyer, you also want to have a buy-sell agreement in place, especially when you run the business with partners.
A buy-sell agreement is a unique agreement that protects a business from its owners’ actions such as malevolent acts or threats. It ensures control retention over who owns your business.
The most common circumstances where a buy-sell agreement functions are when there is a partnership divorce, owner’s death, shareholder actions, shareholder’s disability, and divorce (when the business partner is a spouse).
In the event of an owner’s death, if your business does not have a buy-sell agreement implemented, the deceased owner’s business interest will be transferred to the beneficiaries stated in the deceased owner’s will.
Therefore, adopting a buy-sell agreement is critical and all parties in the business will have each other’s best interest in mind.
At Cekindo, our highly-skilled accountants and lawyers provide the highest-quality advisory expertise to you when you are selling or buying a business in Bali.
We help you optimise your business and improve its efficiency with the best practice industry insights and long-term business planning.
Leveraging a customised approach, we also assist you in drafting a buy-sell agreement and provide support in other business functions through our professional service offerings.
Cekindo can assist you in achieving business success not only in Indonesia but at an international level as well.
As a client of Cekindo, you will have peace of mind knowing that your business matters are taken care of by experts with years of experience.
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