Outline:

1. Introduction

   • Background: Purpose of seeking an established Shopee account
   • Discovery: Finding a potential acquisition target

2. Initial Contact and Meeting

   • Initial reach out and response
   • Description of the meetup location and first impressions
   • Observations of the warehouse and office setup

3. The Meeting Dynamics

   • Description of the owner’s appearance and office environment
   • Tea ceremony and its cultural significance
   • Discussion content: Business operations, pivot to logistics, and mutual understanding of e-commerce challenges

4. Red Flags and Insights

   • Enumeration of the red flags noticed during the conversation
   • Reflection on the learned insights despite the concerns

5. Post-Meeting Reflections

   • Thoughts on the possibility of investing and running the business
   • Unexpected turn: The request for a loan and subsequent revelations

6. Deeper Investigation and Decision

   • The process of due diligence: examining bank statements and business legitimacy
   • Shocking discovery: The owner’s past criminal record and questionable business practices
   • Final decision: Choosing not to invest based on risk assessment and personal comfort with the owner

Blog Post:

Acquiring and Investing in a Business: A Tale of Due Diligence and Intuition

Introduction

On October 30, 2023, my journey to acquire an established Shopee account led me to a potential goldmine—or so I thought. My mission was clear: to find the perfect platform to resell Feastables in Singapore. Through meticulous database sorting and filtering, I pinpointed a shop with surprisingly low sales, an ideal candidate for a bargain purchase.

Initial Contact and Meeting

Eager to seize this opportunity, I contacted the owner, and to my delight, he reciprocated interest, inviting me for a meet-up. The venue was in Sembawang, a location quite removed from the bustle, yet that didn’t deter my spirits. Driving to the location, I was filled with anticipation, curious about meeting a fellow entrepreneur.

The warehouse was impressive, spanning two floors. I was greeted by an admin staff member who led me to meet the owner—an imposing figure with a distinct presence. His office, though sparsely furnished, exuded a sense of purpose with its simple arrangement.

The Meeting Dynamics

As we settled into the meeting, I couldn’t help but admire the owner’s adherence to traditional Chinese business etiquette, particularly during the tea ceremony, a ritual that resonated with the teachings of my father. Our conversation flowed naturally, pivoting around our e-commerce ventures and the inevitable shifts in business strategies to stay afloat.

Red Flags and Insights

However, amidst the insightful exchange, several red flags emerged. Tales of funds being stuck overseas, complications with local banks, and unsettling disputes with former business partners painted a concerning picture. Yet, despite these alarms, the meeting was undeniably enriching, offering a glimpse into a business model alien to my own.

Post-Meeting Reflections

As I left the meeting, my mind buzzed with thoughts. The prospect of investing and steering such a ‘profitable’ business was tempting. However, an unexpected message on December 28, 2023, shifted the narrative dramatically. The owner’s request for a loan, accompanied by bank statements, ignited my curiosity further, nudging me towards a deeper investigation.

Deeper Investigation and Decision

Diligence led to discovery. The owner’s real identity unraveled, revealing a past marred by criminal activities. The complexity of the financial dealings, coupled with the owner’s intricate history, cast a shadow over the business’s allure. Despite the tempting offer of a high monthly interest, intuition and prudence prevailed. In the end, it was clear: investing in the business meant bidding farewell to more than just money—it meant compromising my peace of mind.

In the realm of business acquisitions and investments, this experience underscored the paramount importance of thorough due diligence and trusting one’s instincts. Sometimes, the most profitable deal is the one you walk away from.