Issue 3 | Feature brought to you by Thai Business Acquisition Consultants Co.,Ltd (TBAC)
If you had the opportunity to live in a tropical paradise; somewhere with friendly locals, a relaxed atmosphere and an economy that allows your dollar to stretch a bit farther than it could at home, would you?
Surely most people who read the question above would answer positively. However, when the time comes to turn that dream into a reality, many get stuck; caught up in the seeming impossibility of it all. Of course it’s not actually impossible to pull off though, which one long-term expatriate in Thailand has already realized and is now helping others follow suit. His name is Sven Neuberg and he’s been living in the coastal city of Pattaya for over ten years. While his background is actually in engineering, since moving to Thailand he has decidedly dedicated his career to helping expats buy local businesses and start off their new lives in paradise on the right foot.
Having travelled to Thailand on numerous occasions for a holiday from Birmingham, England since the late 1980’s, Sven not only experienced all the things that make Thailand one of the hottest destinations in the world, he also recognized that the nation could offer expatriates just like him boundless professional opportunities.
Eager to find a way to begin a new life in Thailand, Sven contacted a business broker who informed him of an amazing business opportunity which would allow him to finally take the plunge and move to Thailand. Although he first had to return to England before the permanent move, he put a deposit down on the business to officially secure his ownership.
With so many exciting visions for his future, disappointment was unfortunately what Sven experienced when he returned to Thailand. The “amazing business opportunity” was not at all what he had been promised, and his broker refused to return his deposit. After seeking legal advice, he was told that the cost of hiring a lawyer would greatly outweigh his loss.
While Sven could have thrown in the towel or moved on to another broker at that point, he decided the best way to recoup what he had lost was to set up a business in direct competition with the broker who had defrauded him. It was then that he established his company, Thai Business Acquisition Consultants Co.,Ltd (TBAC), and shortly after began to acquire clients. Through much dedicated work (and possibly a bit of karma), TBAC began to thrive and within three years the broker who had cheated Sven out of his deposit closed his office in Pattaya.
So what was it that brought Sven such rapid success? If you ask him, he’ll tell you that it’s “honestly his honesty policy.”
“Clients, especially other expats in Thailand who are new to the culture really appreciate working with someone who’s straight with them, and I’ve spent years building up my reputation,” Sven said, who of course knows what it’s like to be burned by someone. “Sometimes I have to jeopardize my relationship with business sellers because I will tell the potential buyer if I think any information has been left out of the sale terms. I get those sellers hammering on the table saying ‘why are you telling them that?’ but both buyers and sellers are my customers, so I have to be honest with both.”
Trust, depending on how you look at it, is fortunately or unfortunately a huge part of buying a business. With contracts written in foreign languages and an endless number of legal loopholes, even experienced buyers can run into trouble. This is why the vast majority of Sven’s clients are repeat customers; a number that’s supplemented mostly by word-of-mouth referrals.
“Yes, there can be problems buying businesses in Thailand, but if you work with someone you trust who knows the ropes there are some great business opportunities; some which aren’t even on the market,” Sven says, referring to the fact that he will also enquire about un-listed businesses on behalf of his clients. “There’s no definition of a good deal though; it all depends on how you run the business.”
In more relaxed beachside cities like Pattaya, it can be quite common for foreigners to lose sight of the fact that running a business requires work. “I’ve seen businesses go from nothing to something great, but I’ve also seen people take on a great business and then destroy it in a short amount of time,” Sven said. “Some people think they can move to Thailand, open a bar and watch the cash flow in. But while they’re out enjoying themselves on the beach the business fails. You should only fall in love with the profit, not the place, a person or a product”.
The words of caution above are certainly not to deter anyone from buying a business here, but are simply honest pieces of advice on how best achieve the dream of a comfy life in Thailand. Sven often reminds his clients that if they do put in the effort, the payoffs on running a business here can be tenfold what they might be back home; not to mention the fact that they while they work they’ll be living in Paradise.
“I believe that anything is for sale if the price and conditions of purchase are right.”
