Sell Your Finance Business
You have spent time to structure your business from scratch with blood, sweat, and tears. Now, for whatever cause, you recognize that it may be best to sell your business. Get Best Quote form more than 10,000 + Potential Buyers across globe
• Free Consultation
• Asset Evaluation 10,000 + Potential Buyers
• 1200 + Finance Business Sold
• 40 + Years of experience
• Advisory on Compliances with Various Laws
Identifying potential buyer and seller finance businesses (Banks, NBFC, Small Finance Banks, Payment Banks, Payment Wallette’s, Payment Gateways, etc.) can be a complex and hectic negotiation process. Along with that finance, acquirer company needs to comply with various laws and conduct proper due diligence of the target company to evaluate its commercial potential.
The sale of any financial entity like Banks, NBFC’s, Small Finance Banks, Payment Banks, Payment Wallette’s, Payment Gateways, etc. would engage two parties and include series of transactions between the seller and the buyer. In India, RBI has specified the detailed guideline to be undertaken for sale/purchase of any financial entity.
RBI has designated a guide in detail to be engaged in the sale of finance business in India. Hence, there is no extent of any uncertainty about buying or selling.
Finance Business Selling Process
Your finance business needs to highlight at its best to those who are judging its value. If you have not experienced this process before, you can take advantage of our comprehensive guidance and support. We will make sure that you are fully organized and aware of all the significant actions you will need to take during the sale of your company. For example, In order to sell an NBFC (RBI approval for the change in its management) following steps should be undertaken.
Step 1: Board resolution with consent from each board member to sell the finance business. Post board consent, company’s business, and administration document revision process will be initiated. Once they confirm for you to proceed with the closure, you and the Acquirer will be signing an MOU. At this time, you would be given some token money as confirmation of buying.
Step 2: Post document revision, Acquirer Company to sign an MOU (Memorandum of Understanding). Seller Company may demand some token money from the Acquirer as proof of buying.
Step 3: Sale, takeover, or certain changes in the Board of Directors of an NBFC requires prior approval of RBI, with KYC Documents of the new Directors need to be sent to RBI. Post documents scrutiny by our expert team the submit application along with documents shall be submitted to Regional Office of RBI under whose jurisdiction the registered office on the letterhead of the Company. Along with a cover letter and below information.
1. Shareholder/Directors: Details of all the proposed Shareholder/Directors are to be enclosed with the application.
2. Funds Source: The sources of funds from where the Acquirer is getting the funds to be disclosed.
3. Self-Declaration-1: Declaration by the proposed Directors/members that they are not involved with any such company, whose application for Certificate of Registration (CoR) was rejected by the RBI.
4. Self-Declaration-2: Self-declaration proposed Directors/shareholders that they are directly or indirectly involved with any other entity with principal objective of loans and accepting deposits, but is not registered with RBI.
5. Statement by the proposed Directors/shareholders declaring that there is no criminal case, including any offense u/s 138 of the Negotiable Instruments Act, against them. Pending or convicted.
6. Banker’s Report on the proposed Directors/members.
7. Financial Statements and Annual Report for all the years your NBFC has been existing or the last three years, whichever is more.
Step 4: Coordinating with RBI for any the objections raised and answer concerning the transaction.
Step 5: Post approval from RBI, the public notice to be issued in one daily national and one daily local newspaper, indicating that a change in management is about to take place, as per RBI guidelines.
Step 6: Post 30 days of this newspaper notice are over and objections resolved, both parties can sign the Share Purchase Agreement along with receiving the balance consideration amount.
Note: As per RBI norms, assets available in seller’s balance sheet are to be liquidated and all liabilities are to be paid off. So that the Acquirer company gets a null and void balance sheet in the name of the company.
Note: The entire process takes approximately 2-3 months. Hence, it is advised to validate the credential of Acquirer Company.
Deal Management
We’ll make sure your deal completes using our insights, expertise, and attention to detail.
Call us now on +91- 7619376463 and we’ll give you more information, or simply complete the form.
And if you are looking to sell your NBFC, you need to find an Acquirer Company. Listing your NBFC for sale at corpseed portal would help you get a genuine buyer and the best prices for your company to avoid any ambiguity and misunderstanding in the future.