Buying a business in Uganda: 7 due-diligence checks before you sign

Buying an existing business means inheriting its customers, staff and cash flow from day one. It can be a shortcut to ownership, but only if you verify that what you are buying is what you have been told. Work through these seven checks before any money changes hands.

• Financial records, request at least two years of accounts and bank statements, and reconcile them against the stated turnover.
• The lease, confirm the remaining term, the rent, and whether the landlord will transfer or renew the lease to you.
• Licences & compliance, check trading licences, URA tax status and any sector-specific permits are valid and transferable.
• Assets & stock, inventory the equipment and stock included in the sale, and confirm nothing is leased or financed.
• Staff, understand contracts, outstanding pay and which key people intend to stay after the handover.
• Suppliers & contracts, verify supplier terms and whether important contracts survive a change of ownership.
• Reason for sale, understand honestly why the owner is selling; it often reveals risks the numbers do not.

Get help where it counts

A lawyer and an accountant are worth their fees on any acquisition. Qubicle lists businesses for sale across Greater Kampala with asking price, industry and staffing detail up front, and our brokers can help you structure a deal that protects you. Do the homework, and a business purchase becomes a calculated leap rather than a gamble.