The Importance of Formal Agreements When Buying or Selling a Business in Malaysia
In Malaysia's business sector, opportunities abound for entrepreneurs looking to buy or sell businesses. However, amidst the excitement of such transactions, it's crucial not to overlook the importance of formal agreements. Recently, while visiting a newly opened cafe owned by a family member, I had an interesting encounter with another cafe owner occupying the first floor of the same building. Both cafes shared a common history: they were previously operated by an individual who had since sold his business to these new cafe owners. However, as I soon discovered, this seemingly straightforward arrangement was far from smooth sailing. The new owner of the cafe upstairs approached me during my visit to complain about the condition of the equipment, which she claimed were in a state of disrepair and not functioning properly. This raised concerns, considering that the selling price of the business included the assets and equipment. Sensing her frustration and recognizing the poten