Solicitors
Once you have made an acceptable offer on a business through the
agent, you will have to Instruct a solicitor to act on your behalf
to deal with the purchase. It is important to instruct an experienced
solicitor who has good experience in the sale and purchase of licensed
businesses to carry out the legal conveyance on your behalf. Using
an experienced solicitor will save you time and ultimately worry
throughout the transaction. We would be delighted to recommend a
solicitor to you in the area of your purchase should you so wish.
Financial Planning
It is normal practice for the agent to provide you with trading
‘profit and loss’ accounts for the business after
you have formally viewed the business.
Before meeting with a bank or lender, instruct an accountant
to look through the ‘trading profit and loss’ accounts
to identify any strengths and weaknesses the business may have
and to prepare yourself for any questions that the bank or lender
may raise.
Business Plan
It is advisable before meeting with the bank, to have a completed
‘business plan’ available. The business plan would
ideally have been completed with the assistance of your accountant
in order to make the right ‘first impression’ and
increase your chances of the bank providing you with the required
mortgage. Many High Street banks can provide you with a ’new
business start up pack’ which would normally include a copy
of a business plan. In general terms of lending, most banks will
consider lending approximately 70% of the purchase price of a
freehold business and 50% of the purchase price of a leasehold
business.
Business Valuation
Once the bank or lender has agreed ‘in principle’
to provide you with a commercial mortgage, they will ask for a
‘valuation’ and sometimes a ‘building survey’
to be carried out on the business. The valuation report will determine
the financial viability of the business. Once a successful valuation
report has been received by the bank, and all due diligence has
been carried out, the bank will produce a ‘formal mortgage
offer‘.
Regular Contact
Stay on top of the sale by keeping in regular contact with your
agent, solicitor and chosen bank or lender.
In House Training
Ask the vendors of the business if they would be happy to provide
you with some ‘in house’ training for an agreed period
of time upon completion, to ensure a smooth handover.
Advice
Our specialist team is always willing to provide as much advice
as possible to both the purchaser and seller. We are especially
pleased to provide advice to first time purchasers throughout
the transaction. Please contact us on 01392
848484 for further details.
|
