Selling Small Buisness

ljkgill

Hi,

I was wondering if anyone had any advice for me. I am currently looking to sell my small business. Due to my husbands recent bereavement I can no longer take under the demands on my own. Additionally, due to the current economic situation the turn over has reduced. Although in saying that there are numerous opportunities which could develop the business further and increase the turn over. However, due to my age and my own illness this is something I cant take on. I own the property in which we run the business, therefore if I struggle to sell I am thinking about letting the property. I have advertised the business with a national company whose specialism is in selling small businesses. Unfortunately, I have had no interest. I am worried about putting an advertisement out locally as this may impact on my business.

I am unsure how to proceed as I have no experience in this area. Could anyone suggest anything.

Thank you

lincroft1710

As you are in ill health and are not as young as you were, you could advertise saying "Owner retiring due to ill health".

However do study the terms and conditions of your agreement with the business selling company, you may owe them commission even if you find a buyer yourself.

No interest could be for a variety of reasons, overpriced, low turnover/profit, unattractive premises or area, not a sought after business type, poor marketing etc, too much competition which appears a more attractive bet, not really viable for those looking and in a position to buy or more probably most people too scared to invest because of current economic climate.

Renting out the premises or even selling is a possibility.

Have you researched have many other businesses/premises are for sale in say a 30 mile radius?

steve1980

Use a local commercial agent. What part of the UK are you in?

Who is the National agent?

property.advert

How did you value the business ? Most brokers are clueless and either simply put forward the owner's over inflated guestimate or pick a random figure of their own.

I'm actually negotiating for a business where there is also a freehold, which I don't want, as I'm not in the commercial property investment business. They have offered a lease but the rent under the lease is just a fictitious number which bears little relevance to the actual property worth.

They are being badly advised by a set of muppet brokers and I doubt we'll reach agreement.

Before you start, before you go to market it, do your own research. Consider partial owner financing and leasing, allowing them to buy it through operating the business. If the business slides, it is only worth the building value, which may indeed end up being the true value.

If it is priced well and marketed properly, it will sell. However, I want to see accounts, cashflow from last accounts and a rake of other items which I expect to get when I confer an interest, not have the broker bleating on about asking the vendor for; they should have done that when taking on the business but as I said, most are just simple muppets who haven't a clue what they are doing.