Due diligence is the essential bridge between a promising listing and a successful, profitable acquisition. When negotiating the purchase of a business in Dubai, comprehensive verification of financial, legal, and operational records protects your capital.
1. Financial Audit & Revenue Matching
Never rely solely on verbal summaries or unofficial spreadsheets. Demand detailed monthly sales reports alongside official bank statements for the past 12 to 24 months. Verify VAT filings with the Federal Tax Authority (FTA) to confirm declared revenue matches official tax returns.
A successful acquisition in the UAE requires methodical due diligence across three core pillars: financial integrity, legal compliance, and operational feasibility.
Financial due diligence starts with cross-referencing sales records with corporate bank deposit records for a minimum of 12 consecutive months. Compare seasonal revenue fluctuations, payment gateway settlement schedules (e.g. Stripe, Network International, or Deliveroo/Talabat payouts), and monthly utility bills. Reviewing corporate tax registration and VAT filings ensures there are no hidden liabilities or unpaid tax assessments.
Legal and licensing due diligence is equally critical. Verify that the commercial trade license is active and free of municipal violations or judicial holds. Audit the company's MOHRE labor account to confirm that all staff are properly sponsored, visa quotas are valid, and end-of-service gratuity liabilities are fully documented and factored into the purchase price negotiation.