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Business transfer in Kenya

The majority of entrepreneurs are unprepared to sell their businesses on their own. Buyers of businesses can also get help on which firm best fits their needs and how to acquire them. As trained business brokers, we will save the buyer and seller time, resources, and costly mistakes by guiding them through each stage of this tough business transfer procedure. Every step of the transaction must be meticulously documented for all parties to make informed decisions.

Types of business transfers

Transferring ownership to a family member, a non-family member, or disposing of the firm through a sale, management buy-out, management buy-in, or voluntary liquidation are the three primary alternatives.

Transfer business ownership

A transfer of ownership refers to the transfer of a company’s ownership from one person to another. Preparing to transfer management of a company can be challenging for owner-managers, but getting it right is crucial.

Transfer business assets

Business asset transfer is the process of moving assets from one company to another. It is difficult to transfer assets from one corporation to another. It can have major financial and legal ramifications if done incorrectly.

Transfer business material portion

Any component of the movable property whose “market price” is equal or more than 10% of the initial price when reassigned is called the handover of the corporate material portion.

Transfer agreement and documents

 A Transfer Agreement is a legal agreement that allows a company to sell all of its assets and liabilities to another company. It is written in the form of a purchase and transfer of ownership agreement and contains information about the company and the assets being sold. 

Depending on the transfer and the people involved, certain documents may be required to complete the transaction lawfully. In most cases, the following paperwork will be required: 

  • Memorandums of Understanding (MOU), 
  • Master Contract, 
  • Agreements Reached Among Shareholders, 
  • Any further agreements to complete the company transfer that is depending on the business’s specifics. 

Key points of business transfer

A business transfer, whether accomplished internally or externally, will undergo due diligence to ensure that the procedure is properly set up. 

The following are the most important considerations to make before transmission your company:  

  • The procedures cost, time, and requirements; 
  • Types of reassignments that suits your demands;   
  • The market value of your company;  
  • The market value of all assets;   
  • Informing the employees about the assignment;   
  • The corporate goals of the buyer match your goals.   

Transfer business with us

Contact us and we will assist you with a business transfer.

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