Watkins Commercial - Commercial and Business Transfer Agents Estate Agents and Valuers

This section has been created to help people who are interested in buying or selling a business but are looking for some tips. These items disclosed in this section have been written by Mr Watkins and his staff at Watkins Commercial, and include things to be aware of when buying or selling a business.

BUYING A BUSINESS:: The decision of a lifetime; When purchasing; Glossary for the first time buyer
SELLING A BUSINESS:: Thinking of selling your business?; Key questions when selling your business; Why do I need to have my business valued?; How does valuation work?; Stock

Solicitors, accountants and finances
Buying and selling chain
Confidentiality
No commitment or registration fees are charged
To give our clients satisfaction

Buying a business:

The decision of a lifetime

Certainly buying a business is one of the biggest decisions you will or have already made in the past, and in many cases it will provide you with a sound income and potentially even your home. Therefore it is essential that you dedicate enough time to consider all of your options and where necessary, seek professional help and advice.

Some people will have experienced the pitfalls of buying and selling with residential accommodation, however when buying a commercial property there are many more obstacles to overcome and therefore much thought and preparation is strongly advised.

Having carefully assessed your requirements and goals in life, we feel it is a prerequisite to have spoken to a business bank manager of one of the high street banks; because in running a business you will eventually need such a person by your side. With our many years of experience, we have faced many of the common difficulties faced by clients and therefore often have a solution. At Watkins Commercial, we are able to introduce you to a high street bank source, which will be in a position to open a business account for you and in many cases, when the criteria is correct, arrange loans for stock purchase or indeed the purchase of the business.

When purchasing

It is essential that you take proper advice; many surveyors are not comfortable valuing the goodwill and chattels. However, they can offer valuable information on the value of the lease/freehold property. As specialist Business Transfer Valuers, we are in a strong position to provide up to the moment marketing information, values, and advice.

It is essential that when you purchase a business you do so at a fair price. A small negotiable fee for our service to do this and give you the comfort that you require is available from us. The valuer will make an on site visit to inspect the business, examine the lease, and evaluate the trading accounts.

Glossary for the first time buyer

Below are some common used phases for the first time buyer –

Turnover:

The amount of income generated by the business, this should not include VAT.

Gross Profit:

The difference between turnover and the cost of purchased goods or services provided or the goods retailed.

Net Profit:

The net profit is expressed in several ways, some accountants show the net profit before depreciation, bank charges and interest paid and should be examined carefully.

Super Net Profit:

This is the net profit, adding back to the declared net profit of such items as: depreciation, bank charges, personal private health plans, non-recurring sums of money which might have been spent on alterations to the premises or indeed the acquisition of fixtures and fittings, etc.

VAT:

Value added tax

Assignment and Renewal of Leases:

This activity must be dealt with by close negotiation with the landlord, it is advisable that a solicitor helps you dealing with this. We are well situated to also help you put together a portfolio of references which have been taken up on your behalf in readiness for submission to the landlord so that he/she may give their consent to transfer the lease from one party to another.

Landlord and Tenant Act:

This is the act that governs the well running of commercial premises.

Town and Country Planning (Use Classes Order 1987):

This tells you exactly what planning consents the property or business that you are buying has been granted in the past by the local Town or City Planners, you can ascertain whether or not the business is trading within the scope of the permitted user.

Fixtures, Fittings and Equipment:

Usually the chattels, fixtures and fittings are needed to run the business efficiently and are included in the purchase price.

Goodwill:

Probably one of the most difficult items to value, however with our many years experience we can advise on this aspect and help potential buyers to understand the importance of having goodwill when purchasing a business. In many cases, purchasers will employ a chartered accountant to protect their interests. Their advice will be invaluable when acquiring a business.

Grant of Licences:

here are several licences - liquor licences, premises licence, operators licence, music, performing rights, and landlords licence - in other words, permission to pass the lease from one party to another. We can advise fully on this matter, and whether it’s the right choice for you as a buyer..

All of the above can be very confusing at first but please feel free to talk to us and we will without obligation, give you advice with our many years of experience in selling businesses and acting for buyers. We are here to help you to make well thought out decisions which will effect the well being of your family and business.

Selling your business:

Thinking of selling your business?

Feel free to contact us for further information. It is free of charge to consult with us to understand your options. No payment will be required unless you do decide to sell business. Only once the sale of your business has gone through will a payment need to be made.

Our staff has collectively over 100 years of experience in actively selling and marketing of businesses, and we always put client satisfaction as our first priority.

If you’re considering selling your business, take a look at some of the key questions to ask written below. If you’re interested in next steps, or have further queries, feel free to contact us

Key Questions when selling your business -

I would like to sell my business – What is my business worth in today’s market place?

We deal with selling businesses of all kinds on a day to day basis. As such, we are able to give you fair advice and an accurate market appraisal. This will enable you to make a decision as to whether today is the right time to place your business in our hands.

Why do I need to have my business valued?

When deciding to sell a business it is important that you obtain more than one market appraisal. We are able to give current market values, and advise you of the highest possible price that you could expect to obtain. This advice is free and part of the service that we provide.

How does the valuation work?

One of our experienced valuers will call to meet you and inspect your business.
A brief appraisal of the value of your trade fixtures and fittings will be undertaken.
We will discuss with you the day to day running of the business whilst it has been in your hands to establish the goodwill value.
We will, at all times, make certain that on our advice you will obtain the best possible market value figure.

Stock

Will I need to value my stock for transfer?

Yes as this will become part of the purchase price.

Our team will be able to arrange for independent stock takers to act on your behalf on the transfer of a business for sale purposes or indeed to advise your accountant of the stock on the shelves and the stockrooms, which is a requirement for the Revenue on an annual basis.

We are able to act for both buyers and sellers in these instances and will be able to structure a fair fee which can be arranged between the parties on a transfer or on an annual basis and could be very much by agreement.

Should this service be required, please contact us on Brighton (01273 709090)

Solicitors, accountants, and finances

We are in a position to give advice and listings of a large selection of solicitors, accountants and finance brokers who are able to give advice on small businesses, you do not necessarily have to go to the largest firms, what is really needed is a firm that is used to dealing with small businesses and in many cases the smaller practices are much better value for money. We are also able to introduce you to High Street Banks who will be able to open new accounts for running your business and if necessary, providing a criterion is met, provide a business reference for you which will be needed when applying to a landlord for the transfer of a lease. If you are buying freehold of course, the process is so much easier.

Contact us: Watkins Commercial, Telephone: Brighton (01273) 709090 Fax: Brighton (01273 703003 or click here to register your requirements office@watkinscom.co.uk

Buying and selling chain

When setting up a sale we will ensure if there is a chain, it is workable and will not break, to this end our experience in dealing with landlords, their agents, solicitors, accountants, surveyors and other people involved is of enormous value. Many difficulties can be overcome to assure a satisfactory completion.

Confidentiality

of your sale and your personal information is of paramount importance to us. Your business therefore will be dealt with discreetly and in the strictest of confidence. We very often in sensitive sales transaction insist in a Confidentiality Agreement document.

No commitment or registration fees are charged

A Senior member of staff is a member of the Institute of Commercial and Business Agents, The National Association of Estate Agents and enables us to offer specialist knowledge and integrity.

Telephone us now Brighton (01273) 709090 for a without obligation consultation or click here:

To give our clients satisfaction:-

We are able, because of our considerable experience in the profession, to give advice to assist you, the seller to obtain the best possible price available.

We are a family business, some of our staff have run their own business, we are therefore in a position to evaluate requirements and desires of our many clients.

We are able to advise on Rental Values, for example if you wish to retain the freehold and sell your business, goodwill, trade fixtures and fittings on a lease basis. We give further advice for the best type of lease. Advise on a sensible rent. Give you the freeholder an excellent investment to either sell at any time in the future or become part of your pension plan.

Disclaimer:

When buying or selling a business it is important to seek professional advice from appropriate sources. The material on this website or the Watkins Commercial blog is not intended to negate the need for professional involvement in business transfers. Watkins Commercial is not responsible for any events or circumstances resulting from using the advice written in these pages without seeking professional advice when buying or selling a business.