Buying a Factory Business in Thailand: Buyer Checklist

Quick answer: When buying a factory business in Thailand, check the premises, machinery and trading operation separately. Confirm what you receive, whether production can continue under the proposed transaction, and whether sales and costs support the price. A factory building for sale may contain no operating business or customer contracts.

1. Define the purchase

Ask whether the offer covers land and buildings, machinery, business assets, company shares or lease rights. List any excluded stock, vehicles, brand names, product registrations and customer orders. Check the seller’s ownership and signing authority, and identify financed or leased equipment.

2. Inspect the site and test the machinery

Review the title or lease, access for delivery vehicles, loading space, power capacity, water supply, drainage and building condition. Have a qualified engineer inspect and test key machinery. Record serial numbers, age, service history, capacity and replacement costs. Compare demonstrated output with saleable production records, rather than relying on rated capacity alone.

3. Check approvals for the actual activity

Request the factory and product-related documents relevant to the operation. Verify the holder, location, activity, conditions and any outstanding orders with the responsible authorities. Confirm the steps needed for the proposed operator and transaction before assuming existing permissions continue. Review waste handling, wastewater, emissions, fire safety and other site-specific risks with suitable specialists.

4. Rebuild the trading result

Compare sales invoices, bank receipts, purchase orders, production logs and stock movements. Account for raw materials, labour, energy, maintenance, rejects, transport, rent or finance and working capital. Check reliance on major customers or suppliers, overdue receivables and slow-moving stock. Filed company accounts are a starting point; they do not replace current operating records.

5. Plan contracts, staff and handover

Identify which customer, supplier and service agreements can continue and which need consent or replacement. Review employee records and outstanding obligations with advisers. Agree the stock count, machinery condition, maintenance documents, training, customer introductions, access credentials and responsibility for unfinished orders. Include the required approvals and inspection findings in the completion conditions.

Questions buyers often ask

Does the price include the land and machinery?

Check each item in the asset schedule. A leasehold factory may include machinery and business assets while the premises remain rented. A property sale may exclude the operating business entirely.

Can I use the seller’s factory licence?

Confirm the current procedure with the Department of Industrial Works or the responsible authority. The answer depends on the site, activity, licence and transaction. Do not assume a sale agreement alone settles the permission to operate.

What makes a factory’s profit figure useful?

It should reconcile with sales, production and expense records over a suitable period. Allow for necessary repairs, stock funding and any changes to rent, energy or staffing after takeover.

Documents to request

• Title or lease and a clear included-asset list
• Machinery ownership, service records and inspection findings
• Relevant approvals and any authority orders
• Sales, costs, production, inventory and cash records
• Staff, supplier and customer agreements
• Handover plan and estimates for repairs and working capital

Official starting points

The Department of Industrial Works provides factory services and information, including licensing forms. The Department of Business Development provides company and filed financial information. Confirm the responsible agency and current requirements for the specific site, products and proposed buyer, with independent legal, accounting and engineering advice.