Discover business topics

Doing business worldwide

Blog about doing business internationally.

Bosnia and Herzegovina’s developing market is a fantastic area to conduct trade. Along with having abundant natural resources, it is also advantageously situated in Europe, linking important trade centers like Germany. 

Additionally, the nation, which is a member of Europe, has free trading accords that permit exports and offer tax advantages to businesses. In addition, the state offers numerous advantages for investors due to the booming economy, including low corporate taxes and trade-friendly industrial zones.

Buying a business; full Guide

It could be quicker and simpler to purchase an existing business than to launch one from scratch. Finding the corporation that is ideal for you, though, will take time and work. Additionally, the expenditures associated with purchasing an existing company might be high and shouldn’t be overlooked.

Here is a step-by-step approach to buying a firm:

Step 1. Choosing the business 

Any firm you purchase must match your abilities, way of life, and goals. Consider what you can offer a company and what you hope to gain before you start looking. Make a list of your priorities. Consider your driving forces and your ultimate goals. It is helpful to take your resources into account. Additionally, do extensive research on the industry of business that interests you.

Step 2. Learning about business structures

Bosnia and Herzegovina allow potential investors to buy fascinating LLCs and PLCs there. The most popular form of business, a limited liability corporation, just needs one shareholder and one director. It implies that you won’t need to submit any additional papers about the shareholders and directors. 

There must be at least one shareholder for the public limited company. It means that the company you buy might have multiple investors. Therefore, you must ensure that you have the information on all shareholders if you intend to purchase the PLC.

Step 3. Value the business 

You can evaluate a trade using a variety of approaches. Perhaps your lawyer can assist. However, guidance on valuation will be best served by a firm transfer representative, broker, or commercial financier. Make a thorough investigation into the past and current performance. Learn the rationale for the corporation’s sales.

Calculate the company’s tangible and intangible assets. Investigate the standing of the business and its relationships with suppliers. Find out how much its license and goodwill are worth as well.

Step 4. Due diligence 

You are granted access to the company’s finances and ledgers for a certain amount of time after a proposal has been submitted and approved. It is referred to as Due diligence. 

It ought to present you with a fair view of the company’s current and projected future performance. Additionally, it draws attention to any faults or difficulties that would require warranties or guarantees.

Start your due diligence after you and the seller have settled on a purchase and other terms. They might consent to pull the corporation off the market while you do your research. A down payment is frequently required by the seller to guarantee this “exclusive period,” as it is known.

Step 5. Gathering the essential information

You must compile the necessary organizational and financial documents and present them to the authorities to transfer the ownership of the business to your name. Make certain to modify the company’s existing MOA as well. Additionally, provide the authorities with essential information such as the business’s address and a change in ownership.

Step 6. Taking care of employees 

Just let the personnel and customers know that ownership has changed. You might also wish to talk about staff reductions or reorganizations. But before you take over the corporation, it would be a smart strategy to pause until the due diligence time has ended.