We are proud to welcome on board two new Associate Partners, Alejandro Scholtz who is managing the Malaga and Almeria territory and Kevin Cook who now manages the Costa Blanca South.
Both have a wide experience in business and will be great assets to Business Broker Spain, Alejandro has previously worked in Miami, Florida and has moved across the Atlantic with his wife for the new challenge.
Kevin, has been on the Orihuela Costa for a number of years running his own property business and he sees the fantastic opportunity to manage his own territory.
After some intense classroom and field training both partners are now active receiving continued support from Head Office, and we would like to take this opportunity to wish them the best for their new and exciting futures with Business Broker Spain.
Head Office has also relocated to new premises in the heart of Javea's Old Town, 10 Calle Arquitecto Urteaga. This is a perfect location for us to manage our operation and greet clients.
The Old Town is steeped in history and when clients do visit us we love nothing more than showing them the "pueblo" and having a wander down the ancient narrow streets to gab a coffee.
For those of us living in the Eurozone and earning out of the UK the last few months have been bonanza time. We have seen the Euro steadily rise to the dizzy heights of 1.42 to the Pound.
The Pound has gone from strength to strength in the last week as investors worst fears over Greece fail to materialise at the moment! Also there is strong likelihood of the UK raising interest rates before the end of 2015. The safe bet for the investors and markets is the UK, and with rates about to rise the more likely that Sterling will stengthem even more. Investors will buy into the Pound expecting the value of it to rise in the future.
All this bodes well for Business Broker Spain, our clients from the UK are seeing and will continue to see great value in businesses for sale due to the exchange rate. However our advice is that if you are contemplating a purchase and you have the funds take the 1.42 exchange now. Greece is facing a crisis of liquidity, and this puts pressure on the Parliament to accept the terms offered, and Tsipras would not have accepted terms which he knew his people could not stomach. These rates are essentially gift wrapped and there to take advantage of. Once a solid agreement has been reached we could see the rates back to around 1.37.
For the joy of holidaymakers, expats and people moving to the Eurozone is just oneside of the coin. For British exportors to Europe and the USA, the pain is immense. Many companies have already seen a drop in orders due to te strength of Sterling and any further gains made by Sterling will mean that firms will lose more business.
The only comfort these firms can cling to is that old saying “ what goes up must come down!”
Business Owners Direct, “Businesses for Sale Direct from the Owners”
In the first of a new monthly series, Nigel Fitzpatrick, from Business Owners Direct looks at how to buy a business
1. Buying a Business in Spain.
Buying a business in Spain is a daunting prospect when you are from another country. The language barriers, the process, the red tape all make it seem impossible, yet actually it’s fairly straight forward.
Buying a business in Spain is no different to buying one in the UK. There’s a simple question you should keep asking yourself here in Spain, “Would I do this in the UK?” If the answer is no then invariably it’s right. The golden rule is not to get carried away with it all and keep your head, after all you are about to go into business!
Number One rule is to always appoint a well known and recommended lawyer to act on your behalf. The lawyer will negotiate on your behalf with the Spanish business owner and landlord (if language is a problem) and help you get the best deal. You may well be purchasing an English business and because you can converse you may think you don’t need a lawyer, WRONG!
Prepare yourself for your purchase, sit down and structure your business plan. (We will cover in more detail how to compile a business plan in future issues). Research the business, do your “due diligence” and don’t rush in. Visit the business at different times of the day, sit outside and watch, do this for a week and it will give you a good understanding of the business. Don’t ignore your potential competitors, see how and what they are doing, build your knowledge and use it to your advantage when you begin your business.
How long does it take to buy a business? Purchasing a business is not a lengthy procedure, and normally it can be completed in a matter of weeks.
Associated costs – A lawyer will normally charge €80-€1500 for the conveyance work carried out. An opening licence if needed costs in the region of €600.
Next week I will look at Business Plans, every business should have one!
2. Business Plans
A business should always have a business plan; initially this will capture the strategic operational and financial aims of the business, which will be adapted to as your business grows.
Ideally the potential/business owner should write the plan, but write it in the perspective of the audience. What’s the purpose of the plan? Is it for personal use to refer to? Or is it to secure finance or investment? Or simply communicate the future plans of the company? Think about who will be reading the plan and tailor it accordingly.
Do your market research, factors such as the market size, potential growth paths. For example an internet cafe would research the local population, household internet coverage, and predictions on whether it’s likely to grow or decline.
Going into business you have to have a measure and understanding of your competitors, if your market sector is highly competitive is this price led? How will you compete effectively with the existing players?
When writing your plan, be sure all the key areas are covered, include colour charts and spreadsheets.
The numbers will be under scrutiny, all your costs should be documented in full and sales predictions should be realistic and conservative. Preparing a cash flow chart and a break even chart you will be able to establish how many sales you must achieve to cover your costs and also how finance you must raise to start your new enterprise. At the beginning there are always many start up costs, and sales can be uncertain, so make provision for a strong cash flow budget.
As I have previously mentioned a business plan is a vital tool and you should always prepare one before embarking into business, and you should always refer to it in later stages and adapt it as your business grows.
There are templates available on the internet which can help you write your plan, and also help you form you Profit & Loss, Cash-Flow and Break Even charts.
• Sell a Business
• Maximising Profits
• Branding & Marketing
• Operating Systems
• Forming a Company
Selling your business can be daunting if you have not experienced it before. Therefore it pays to have a broker that understands your needs and the process from instruction to completion.
Business Broker Spain has a wealth of experience in Spanish business sales; its Directors have over 25 years combined experience and sold their first business to a family from the UK in 1990. Time and experience has taught us that majority of our clients have two major expectations. Firstly, discretion and confidentiality and secondly they seek the best possible price for the hard work, dedication, commitment and most importantly financial investment made over many years.
Speaking both English and Spanish the team have been residents of Spain since foreign nationals began to make investments in Spanish businesses. During this time we have assisted many clients identify suitable businesses for sale throughout Spain.
It is also worth noting that the team have significant business sales experience internationally, having developed business transfer agency (business broker) networks in the UK, Cyprus, South Africa, Russia, Netherlands and Eastern Europe. Our marketing power is unrivalled, and our aim is to give your business the best chance of selling by reaching markets all over the world.
You may be surprised at just how much your business is worth and as we provide a FREE pre-sales valuation without obligation then clearly you have nothing to lose and everything to gain by arranging for a Director of Business Broker Spain to visit and discuss your marketing options. Discretion and confidentiality is of the utmost importance and we are therefore happy to meet with you outside of normal business hours or when you business would normally be closed.
When thinking of selling your business speak first with Business Broker Spain, our market reach, decades of experience and first class service means that your business is indeed in safe hands! We are pro-active and our deal team respond to inquiries in less than 12 hours and go to great lengths to qualify buyers, organise and accompany viewings. We handle the negotiation process and we will endeavour to get you the best price possible.
Nothing to Lose and Everthing To Gain. Contact Us Now at email@example.com
Purchasing A Business in Spain
Buying a business in Spain is a relatively straightforward process, particularly if you are well advised and are dealing with professionals with first hand experience in the market. Here at Business Broker Spain, our management between them have more than 25 years experience in the sale of businesses in Spain. We doubt sincerely whether there is another agency with this level of expertise. From the sale of their first Spanish business in 1990, our Directors have advised in the sale and purchase of literally thousands of small and medium businesses throughout Spain. As a buyer you have no fee to pay us, all of the businesses that we sell are commission inclusive with all of our fees being paid by our vendor client’s.
Business Broker Spain offers impartial advice and helps you through every step of the process, and the golden rule we tell all clients is this “If you wouldn't do it in your own country, don't it here”
Many people forget to use their brains, or actually leave them on plane! Our role is simple, we provide you with sound advice and recommend quality legal representation if needed to help you avoid the pitfalls.
Our services to buyers include all of the following and more!
Personal Guidance and Viewings
Supplier Negotiations – if you are buying a bar or a restaurant, you will want to make sure that you get the best terms from your suppliers. Our contacts and expertise will ensure that you can buy your products at the best prices thus making certain that you run your new business as profitably as possible.
Lease Negotiations – we will negotiate favourable lease terms with the landlord of your business where the business to be purchased is in rented premises.
Conveyance Introductions – it is essential that you obtain good legal representation and from someone that speaks your language.
NIE Numbers – in Spain we each have individual financial identification numbers, much like your Social Security numbers in the UK. For foreign nationals this number is called your NIE (Numero de Identification de Extranjeros), once allocated this number is with you for life and is both your VAT registration number and personal ID number. You will need this number prior to opening your new business and an important part of our services to new buyers is to guide you through the simple process of acquiring it.
Guide to Purchasing a Leasehold Business
Firstly obtaining finance from a bank to purchase a leasehold is very difficult in Spain unless you are can to guarantee the business against a property. The agreed price you are paying for the leasehold is paid in full on signing of the purchase contracts and the lease agreement with the landlord. In normal circumstances a deposit of € 8,000 or 10% (whichever is higher) is payable. The deposit secures the business and it is non returnable. Completion of purchase can be done within 10 to 14 days.
Standard Length of Leases
The normal lease length is 5, 10, 15 or 20 years, on a rolling contract.
You have an automatic right to renewal of the lease providing you pay the rent on time and keep within the terms of the lease.
During the Lease
• Payment of the agreed rent on a monthly basis will be made.
• The business can be run in accordance with the terms of the lease (i.e. as a bar or shop).
• Refurbishment of the premises can be made to the décor etc., but any structural work permission from the landlord will be needed.
• Utility charges are the responsibility of the leaseholder
• The landlord is responsible for external repairs.
• The rent will increase only by the rate of inflation each year
• On renewal of the lease, negotiations on a new lease price and term will commence approximately 2-3 months prior
• Upon renewing the lease you do not have to pay again for the business.
Selling the Lease
Normally you can sell sell the lease within a certain time frame of commencing your new lease contract with the landlord and the landlord will have in the contract that you will pay him a percentage of the price you sell for. Permission will normally have to be granted to sell from the landlord and he has the to agree to the new prospective tenant.
Purchasing a business freehold, it is exactly the same as buying a home in the UK, it's no different, you will receive the deeds to the property. Obviously you then can lease your building, and generate an income from it.
Contact us now at firstname.lastname@example.org