So, you’ve decided that the time is right to sell your Tenerife business. You want to get the best price for your bar, restaurant or non-catering business and you want to sell it reasonably quickly as you have plans for your new life. Where do you start?
The first step is to get your business registered for sale with an experienced Tenerife business agent. At Intelligent Business Sales we can offer you our complimentary business advisory service. This starts with a one-to-one personal consultation at your place. In this we would want to know all about your business, so it’s important to have your facts, and figures, ready.
Tell us all about the main selling points of your business. Try to remember back to when you first started. What initially attracted you to buying this business in the first place? Who are your customers? What do you offer that’s special? If you think there are ways that a new owner can improve the business, don’t be afraid to say so. A new owner will always want to feel that he/she can add value to their new business.
Accounts and financial information are very important. What is your annual income and expenditure and can you produce a Profit and Loss? Yes, we know that these figures will not necessarily be audited figures and that many businesses do not need them for the tax man. However, put yourself in the position of a buyer. They will want to know what they are getting for money. At the end of the year they will want to know how much profit to expect (if any). If you are not able to provide them with any figures, then they may simply walk away and find a business that can. Yours might be the perfect business for them but if you don’t show the evidence needed, then you can too easily lose a sale.
If you don’t already keep figures, don’t worry. We can give you help on how to keep proper records so that a prospective buyer can have total confidence in your finances. Remember, the more information you can give us about your business the better! You will be providing us with the vital tools we need to work in partnership with you to present your business in the best possible light to our clients.
Try to imagine what it would be like to be a buyer looking at your business. Truthfully, what would you be willing to pay to buy your business today? Buyers will compare your business with the others that they see. Look at the market realistically, research and see what has sold in your area and just as importantly what has not. We can also offer you a free valuation and guide you through agreeing a realistic sales price. Remember you can always negotiate however it is in our best interests to get as much for your business as possible.
Generally, a buyer would expect to recoup their initial outlay within two years. A realistic price with documented profit and loss accounts will generate higher levels of interest and a faster, easier sale.
Prepare your premises for prospective buyers. Do your premises need a good tidy up and reorganising? Just as with residential property sales, first impressions are crucial. A mini-makeover could raise the perceived value of your business.
Keep figures at hand and be prepared to answer questions regarding takings and costs, your trade and your clients.
Keep it simple with short to the point answers. Don’t oversell but don’t be afraid to tell buyers about your achievements. If you have something special or a unique selling point, make sure the prospective buyers knows these. You don’t want them to miss it and be as passionate and positive as you possibly can. We then do the rest for you.
Intelligent Business Sales only charges commission on results. Our agreement with you is entirely on a no-sale/no-fee basis. Therefore, there will be no upfront costs for advertising your business for sale. At the time of registering your business with us, we will discuss and pre-agree the fee structure with you.
Upon selling, you may have to pay a transfer fee to your landlord. This will depend upon the terms in your rental contract. There will also be fees to your accountant to remove you from the tax and social security systems.
At Intelligent Business Sales we are professional in our work ethic and use a proven, tactful method of active selling and marketing but will never pressurise clients to achieve a sale. We listen carefully to both the buyer and the seller and endeavour to match the client to the business. Before we introduce clients to you, we discuss the history and potential of your business as accurately as we can. Our aim is to introduce you to serious, pre-qualified potential buyers and to support you throughout the process in achieving a successful sale.