Latest News from Everett Masson & Furby
Entrepreneurial Enthusiasm is back - Market Overview
After nearly three years in the doldrums, the Business Transfer market is back on form reports Andrew Wilby of nationally represented Business Transfer Agents, E M & F (Everett Masson & Furby).
Finance is available despite the banks previous reserve in supporting small businesses, they are now beginning to compete with each other, deals are now starting to complete again and buyers are opening their front doors and seeing a "ray of sunlight" in achieving their goal to buy a business.
Post election the phones continued to ring in ever greater numbers and with a private sector bias now becoming the economic culture, buyers are returning. Price is still the key issue and for many vendors "there is still a reality nettle to be grasped". Over priced businesses be they pubs, hotels or shops are going nowhere, many vendors must now accept that to sell, prices must fall. Recent house price surveys have now made price reductions fashionable and if vendors have chosen not to respond, prospects for an early sale are poor. Purchasers are cautious but deals are now completing in increasing numbers.
"Vendors need to re-appraise their asking price" and they need to look at the "cost to change" as houses or replacement businesses are now starting to see values drop to affordable levels.
Money is still very tight but some buyers are now bypassing the banks and taking on private or vendor loans.
Likewise leasing the freehold of a business is also very popular, as vendors can retain the building as an investment property to get a return a bank can simply get nowhere near. Indeed leasehold businesses are a very popular category with buyers, enabling the buyer to put their cash into trading as opposed to bricks and mortar.
Looking at recent sales Andrew Wilby reports that Post Offices are back in fashion as are Newsagents, Family style Hotels, Cafés and Tea Rooms. Businesses with a lifestyle are proving exceptionally popular whilst the more unusual business is in great demand as buyers look to escape the corporate rat race. Furthermore there is now likely to be an influx of purchasers with redundancy money as the financial services sector and local authorities start to reduce job numbers, and fund packages which until recently have not being coming through.
Above all EM&F report that nationally the business buyer is back and going strong with a genuine enthusiasm to succeed.