Along with Curacao, Sint Maarten, and the Netherlands, Aruba is an independent Caribbean state within the Dutch kingdom. It is surrounded by the Lesser Antilles (west), Venezuela (north), Bonaire, and Curacao and is situated in the southern Caribbean Sea (east). Aruba’s judicial system is based on the Dutch system. Along with Bonaire and Curacao, Aruba makes up the ABC islands, and together with other Dutch Caribbean islands, it is referred to as the Dutch Caribbean. The population of Aruba is all Dutch nationals, and its economy is open and market-driven. Oranjestad serves as Aruba’s capital. Other languages spoken here include Portuguese, Spanish, German, and Papiamento in addition to the official languages of Dutch and Papiamento.
The procedure for selling a company in Aruba
The following are the steps taken:
Organization
By organizing your selling memorandum and including all the data a buyer would require, you can save time. Start by giving a brief overview of the business being sold, including its location, revenue, and profit. Then, describe the business’s offerings in detail and explain why it is a distinctive and wise investment. Lastly, describe the management structure and the seller’s position inside the company.
Included among relevant documents are:
- Three years’ worth of financial documents, comprising balance sheets, income statements, and cash flow statements.
- Any permits you may have.
- Records of insurance policies.
- Tax filing.
- An exhaustive collection of resources.
- Lease information for buildings.
- Supplier information.
- Staff list with anonymity.
Discover the best guidance
It is advisable to use a broker when putting your business up for sale. Access to resources that will help business brokers connect with a big audience of important buyers. They can also share their expertise in discreet marketing. When selling a business, secrecy is crucial because premature disclosure to consumers, staff, or rivals could lower the sale price. Before gaining access to sensitive information including financial accounts, supplier data, pricing, and strategy, brokers will ensure that purchasers sign a non-disclosure agreement (NDA). The majority of NDAs last for several years.
Before choosing a broker, give yourself plenty of time to speak with potential applicants. Pay attention to practical approaches. Even though it could seem like a waste of time, going through a comprehensive screening procedure can result in considerable time and financial savings.
Valuing your business
You must evaluate a company’s financial situation before advertising it for sale because this will be the main factor in selling the business. A broker should offer guidance on the various approaches to valuing a company.
Timing
Be tolerant. The process of selling a business cannot be sped up. External elements are also very important. For instance, an impending tax increase, industry-specific regulation changes, or a predicted drop in trade (e.g. Brexit). It is feasible to lessen the exposure of your company to potentially disastrous conditions and preserve its financial value with careful planning and forward-thinking.
Uphold general performance
It is essential to sustain the firm’s general performance throughout the selling process because it can take time to consummate a contract, particularly when selling a corporation. In the business world, a year is a very long time, and your firm could undergo several changes.
These could be internal (important employees leaving) or external (industry shifts or regulatory risks). Some of these are obviously avoidable, while others can be lessened with constant leadership.
Locating a purchaser
A company broker will typically take the lead when it comes to finding and qualifying purchasers. However, there are important factors to think about if the sale is conducted without using a broker.
Pre-qualify prospective customers.
The majority of new business acquisitions are partially financed by outside lenders, and many deals go through because a prospective buyer is unable to secure financing after reaching an agreement with a seller. By excluding unqualified customers right away, you can not only save time but also prevent the disclosure of private data.
Keep in touch with prospective purchasers frequently
This will maintain the momentum and show the seller to be sincere.
A letter of intent (LOI)
It outlines the intentions of the buyers and sellers regarding the sale of the company and is a preliminary, non-binding document. Importantly, it is not the final contract but rather a step toward it.
To make sure you are aware of the tax ramifications of various deal structures and your potential tax liability, work with a lawyer and an accountant.
Leave room for negotiation, but before starting a discussion, choose a low price.
