Latest News from Everett Masson & Furby
Convenience Stores still in demand
Quality convenience stores priced correctly are selling, there are plenty of buyers about ensuring the viewing of businesses remains strong, the hard work lies in brokering a deal and getting over the finishing line which is why an experienced business transfer agent is required in the current economic climate to assist both vendors and buyers in ironing out any problems encountered along the way.
There are a substantial number of convenience stores on the market from which would be buyers can choose, if you are looking to sell you need to make sure yours stands out from the crowd, high turnover stores are still in demand and when priced correctly a sale is quickly achieved.
Whilst a vendor may not be comfortable with a price suggested by a Business Transfer Agent or indeed reducing their current asking price, in particular should it be less than that what was paid originally during the boom years, it needs to be remembered that whatever sale price is achieved will be relative to whatever a vendor is going to buy next as this would have also reduced in value.
To maximise any sale price achieved vendors have got to have their house in order, up to date accounts are a must, in particular if a purchaser requires finance, not just for the benefit of the bank in agreeing the loan but also for the business valuation which will ultimately be required. Whilst a purchaser maybe prepared to pay the asking price for a business if the accounts do not justify the price then the valuation will be pulled back restricting what the bank will lend and what the purchaser will pay, in the current market place purchasers will not overpay!
Although there are large numbers of buyers chasing the high turnover convenience stores the village store also remains attractive to buyers, whilst turnover can be lower healthy profits can be generated through lower overheads and owners enjoy a high standard of living benefiting from more favourable opening hours. Quite often these stores are unopposed and of late have seen sales increase as customers become ever more conscious of the cost of fuel and the fact it is not always cheaper driving to the nearest supermarket.
Woolsery Post Office and Stores situated close to the North Devon coast was one such village store sold this year enjoying an unopposed trading position within the centre of the village, occupying a huge site to include a number of barns and outbuildings offering development potential, not to mention the accommodation providing up to 6 bedrooms. Coupled with this was a thriving growing business, benefiting from a recent major refit, proving most profitable to owner operators, a local buyer was found and the business was sold off a Freehold asking price of £499,950.
Having been established nearly 50 years EM&F are able to provide you with a free no obligation market appraisal with a view to preparing your business in readiness for sale.
If you are considering selling your business now or in the future then contact your local EM&F office.