Wednesday, 04 October 2017 12:36

Frequently Used Business Terminology

Business Terminology

The Difference Between Leasehold & Freehold

For many people purchasing a business here in Spain they will encounter leasehold and freehold opportunities, and when walking down any street you will notice signs in business premises "Traspaso", which is Spanish for a leasehold sale. A leasehold purchase you are buying the "business" and the fixtures and fittings and a freehold purchase you are buying the building, the land it sits on plus the business.

What's S.A.V.?

​S.A.V. is stock at valuation.​ Normally when a business is purchased the vendor does a stock take on the day of sale and the stock is paid for on top of the business sale, discussions prior will give the purchaser an indication of the approximate value (cost price)

What is Gross Profit and Net Profit?

Gross profit is the difference in value between the revenue generated by a product or service and the cost of producing it and generally includes things such as materials, distribution costs and labour costs. To sum up, gross profit represents the amount of value gained from the sale of a product or service.

However, gross profit doesn’t account for other costs, such as operating expenses (which are deducted to give operating profit) or other overheads, taxation, interest and payroll (which are deducted to give net profit).

Net Profit is the profit after all other expenditure has been deducted and is the money the business has actually made for the financial year.

Published in Blog
Tuesday, 31 January 2017 06:00

Buying a Business in Mallorca

Buying a Business in Mallorca / Business Brokers in Mallorca / Why Buy in Mallorca.

Calo des Moro

Mallorca, also spelt Majorca, is one of the Mediterranean’s most beautiful locations and provides entrepreneurs with the perfect opportunity to establish a highly desirable lifestyle. With the frequent sunshine and a continuous influx of holidaymakers, it is easy to see why so many people view setting up business in Mallorca as a lucrative and enjoyable venture.

Mallorca is the largest of Spain’s Balearic Islands with fantastic beaches, local historical attractions, as well as excellent restaurants and nightlife that entices many holidaymakers from across the globe year on year. For many, a Spanish sun holiday is a perfect way to spend their annual leave, and the holiday does not have to end as many people return to Mallorca to invest in a business and retire there. Mallorca offers a fantastic quality of life for both Spanish locals and the expats who move there, and the year-round sunshine is of course highly desirable.

Buying a business in Mallorca is a great opportunity for entrepreneurs and experienced professionals alike as the island is an extremely popular destination with the international airport, Palma de Mallorca Airport, being one of the busiest in Spain. As part of the European Union, Spain attracts many fellow Europeans who want to visit a country that also has the Euro currency, and with so many visitors coming to the island there is the ideal opportunity to set up and run what can be a popular and profitable business.

The Business Broker Spain team have over 25 years of combined experience in helping businesspeople from around the world find the right investment to match their objectives, as well as successfully selling an already established business. Our team enable you to achieve your goals and find the right business or buyer, as well as relocation assistance, language translation, advice with opening bank accounts and finding accountants or other business experts. We will also assist you with your legal obligations such as company documentation, licences, permits or other registrations you need to complete.

Buying a Business in Mallorca

Spain offers numerous benefits for businesses due to its geographic location and climate, as well as having a stable government and economy, making it appealing for development and investment opportunities. Being part of Europe also means that trade between other EU countries is easier and the labour and transport costs are low.

Using a professional business broker in Spain is the best way to buy or sell any business in Mallorca as you will receive expert help and advice from a highly experienced team. Whether you are wishing to buy or sell a Spanish bar, restaurant, shop, or bed and breakfast in Mallorca, our expert team will guide you through the entire process and use our vast network of owners, investors and suppliers to ensure you get the best service possible. Business Brokers Spain also has a range of amazing investment opportunities for those wishing to start or develop their portfolio in Mallorca.

For those interested in investing in the island, having a professional Spanish-based negotiator is essential to provide the help and advice you need to find your ideal business or sell your existing enterprise with ease. At Business Broker Spain, our management team have vast experience in the sale of businesses in Spain and have offices across Spain as well as in London.

For the professional way to buy your next business in Mallorca, contact your nearest Business Broker Spain office today: Alicante +34 965 020 527, Marbella + 34 95 127 226, London + 44 203 773 5016 Tenerife +34 822 680 011, or email info@businessbrokerspain.com.

Published in Blog
Monday, 08 May 2017 13:23

Spanish Economy On The Up

Spanish Economy On The Up

The Spanish economy is experiencing continued growth and the future is looking bright. The Spanish economy expanded at a sturdy rate of 0.8% in Q1, the unemployment rate is falling and there is a real sense of optimism in the real estate sector throughout Spain.  The export sector is benefiting from strong global demand.  The IMF predicts that the UK (2.0%) and the US (2.3%) will be among the top performers when it comes to the world’s large economies in 2017. The IMF estimates total global economic growth for 2017 will be 3.5%.

Growth for Spain in 2017 is estimated to be 2.6%, up three-tenths on the last forecast, in January, and putting the country slightly ahead of the United States and Britain in terms of GDP growth for this year.  Reform is still needed and employment contracts and Social Securtiy payments are areas of great concern for the forthcoming budget 2017.

There's a long way to go, but the corner has been turned and we are seeing enquiries for businesses increase and confidence is returning.

Published in Blog
Thursday, 15 September 2016 13:43

About Us

Business Broker Spain over the years has become one of the largest business brokers in Spain.  Founded by Nigel Fitzpatrick and Mervyn Hughes in 2011 after re-branding from being associated with a large business transfer agency based in the UK. Nigel initially worked the Costa Blanca area of Spain and Mervyn the Costa del Sol and the logical step was to amalgamate these areas and join forces to grow the brand. Through sheer hard work, determination and tenacity we rode the recession of the early 2000's to develop other areas of Spain where Business Broker could thrive.

Short Bio's of the Team at Business Broker Spain

Nigel Fitzpatrick - Director.

Nigel Fitzpatrick As mentioned previously, Nigel is Director of the company and founder.  Nigel has lived in Spain for the last 12.5 years, married with a daughter that was born here.  His background is varied, worked in Australia at the age of 20, he owned a very successful bar/restaurant in the UK at the age of 22.  After selling this he was ready for his next challenge and joined the family hotel business and eventually ran the business and sold it in 2003. 

Business is in his veins, and he is passionate about success and the brand he has helped to create. Another passion is rugby having played in the UK and Spain, also coached in Spain but injuries and old age has finally caught up!

Mervyn Hughes - Director.

Mervyn HughesFrom the age of 25 started 2 manufacturer business, conservatory and garden rooms and fitted kitchens. Build this up and sold out for substantial profit after 10 years. Owned and operated 3 Mexican themed restaurants in ​K​ent again sold out to a national chain. Joined a national company as ​S​ales ​D​irector responsible for 30 salespeople with a turnover of 10 million plus. Invited to join LaSalle one of the UK largest companies dealing with mergers and acquisitions as regional director with deals in the 5 million plus sector.

Stressed out at the age of 47 went to Marbella to open a professional business brokerage,  joined and merged with Nigel​ Fitzpatrick​ in the Costa Blanca to form the largest and most trusted professional business brokerage in Spain. The rest they say is history.

Daren Martin - Associate Partner, Costa del Sol.

Daren MartinHaving studied at Royal Tunbridge Wells Grammar school for boys I moved quickly into the Stockbroking business I was quickly into the financial options field and exchange traded options where I traded various different exchanges throughout the world I finally ended with 15 years on the LIFFE where I was a ​D​irector of the then SwissBank Corporation (later to be Union Bank of Switzerland) With the exchanges swapping from open outcry to computers I set up a firm using electronic trading platforms but decided that it wasn't for me after a couple of months.
From there I have ran several small business in the ​UK ​from selling telephone systems to ​lodge homes​​, and I am passionate about business and helping others fulfil their dream.​
About 7 years ago I had kidney failure and decided to move to the Costa del Sol where I embraced the opportunity to become an Associate Partner of Business Broker Spain.

​Alejandro Scholtz - Associate Partner, Malaga City & Almeria.

Alejandro ScholtzAlejandro E Scholtz is a serial small business owner turned business broker by pure good old trial and error. Having recently moved from Miami Beach where Alejandro bought and sold several internationally recognized Quick Service and Health & Fitness franchises he owned, Alejandro has made a profession out of the confusing and error intolerant process that is acquiring and selling a functioning business. He studied Business Administration at the University of Colorado and received his MBA from Babson College. In his free time, Alejandro enjoys playing golf, cooking things he has no idea how to cook and reading at the beach. Grateful for an amazing group of Coworkers and Mentors at Business Broker Spain, Alejandro makes sure that buying and selling a business feels more like going prepared to the beach than trying to slay a beast.

Published in BBS
Tuesday, 14 June 2016 11:37

Business Broker Spain Expansion

Business Broker Spain Expansion

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.

Published in Blog
Tuesday, 21 July 2015 15:17

Procedure After Instruction for Sale

Proceedure After Instruction for Sale

Once Business Broker Spain has been instructed to act on your behalf in the sale of your business, we take full details of the business and internal and external photos. Part of the discussion with you the vendor is to ascertain if the business is being sold confidentially or if you prefer a full description and photos for the marketing.

The complied details of the business are passed to Mr Nigel Fitzpatrick, Director and head of the deal team. The business is added to Business Broker Spain's website with a reference number commencing in “BB”  An email is sent to you informing you that the listing is live and asking you if you would like any amdendments making. Once we have confirmation that the listing is your satisfaction we then activate the XML feed which will link into the numerous business portals such as BusinessesforSale.com, ThinkSpain & Kyero.

The pro-active service is now begun, with the deal team matching your business to our large database of clients, details of the business are sent and phone calls made. Contact is made to our collaborators around the world for them to contact their clients to establish if the business is of interest. The networking web begins to get spun, with the main aim of getting your business in front of as many buyers as possible.

At the end of month one we contact you to update you on how the marketing is proceeding and we inform you of any serious interest, you will receive these reports monthly.

Once we have a serious client interested in your business we qualify them to establish their timescales, budget and more importantly if they have funds in place to proceed. No sensitive information will be released to the client until our NDA has been signed. This document is a standard non-circumvention and non disclosure agreement which not only protects you as a vendor but protects us as the broker. Our experience over the years has taught us that clients which are genuinely interested will sign the document which takes us to the next process.

When the NDA is completed and signed, we will request the last two years trading figures from you and any other information te client has requested. It is vitally important that you respond promptly to this request. A client will not be prepared to go to the expense of travelling to view the business without any trading figures. It's very important that you understand the clients needs, why would a client pay hundreds of pounds/euros for flights before seeing the performance of the business?

The figures and business information is sent to the client and discussions are had with the client about the business and the about the “true” performance. Our job is now to sell the business and encourage the client to view. The process can be lengthy, it's very rare a client can drop everything and be on the next plane over, however we understand this and no pressure is every put on a client simply because desperation leads to fear.

One of the Directors always accompany the client on a viewing and we try and keep this as relaxed as possible letting you the vendor show your business and to a certain extent control the conversation. Client's like to hear and see that you are passionate about your business, and during the viewing this is a good time to showcase this. Once the viewing has been completed, and the client is satisfied our Directors will chat about the business and the potential it offers and if the client wants to give feedback notes are taken to pass onto you the vendor. We give the client a few days to think about the business and we contact them for feedback and establish if they are interested in placing an offer and obviously report back to you.

The deal team's job is now to establish a firm offer and the clients timescales to purchase. Nigel Fitzpatrick will negotiate with the client on your behalf to broker the deal and get you the best price possible. If there is an agreement, we will confirm via email and request your lawyers details putting your lawyer in contact with the vendors lawyer. Deposit contracts will be drawn up and the deposit paid into the lawyers account, with a date for completion.

Business Broker Spain thanks you for placing your business and trust in us and we assure you of our best attention at all times.

Published in BBS
Monday, 01 June 2015 14:24

Why Use a Business Broker in Spain?

Why Use a Business Broker?

Business Brokers act as intermediaries between buyers and vendor's of a business. They may represent either party in the transaction, and do not take possession of goods or property, or deal on their own account. Brokers fill the important marketing function of bringing buyers and sellers together and helping them negotiate mutually beneficial agreements. In addition, they facilitate transactions by providing expertise and advice.

Brokers provide numerous benefits to both buyers and vendors, for example, vendors benefit because they do not have to spend time searching for buyers or vetting potential purchasers.
Qualified Brokers have access to a large data base of clients that are in the market to purchase a company, and they know how to attract and screen potential buyers much more quickly than do typical business owners. The Broker may also be able to help the vendor place an accurate value on his business, devise a strategy to transfer ownership over time, address necessary paperwork, and overcome legal hurdles through the escrow process and more importantly have proven routes to market to insure a prompt sale.

The buyer also benefits from the Broker’s access to business buying and selling channels. A buyer that goes to a Broker may be able to find a business that suits his abilities, wants, and financial situation much more quickly than he could working independently. Moreover, good business Brokers will not accept businesses that are overpriced, dependent on illegal activities, or otherwise fatally flawed, thus saving buyers the legwork of finding this out for themselves. (Business Broker Spain rejects as many as half of the businesses that they are asked to sell for these reasons mentioned above!) In addition to screening, the Broker can help the buyer determine what the client can afford and may be able to assist in arranging financing to purchase the business, and, as with vendors, business Brokers can provide help with licenses, permits, and other paperwork. It is the Broker’s duty to ensure that the interests of the buyer (and the vendor) are protected by any contracts or agreements such as an NDA relating to the sale.

All of these services can be of great value to business buyers and vendors, but perhaps none is as valuable as the Broker’s position as a buffer between the two sides. The skilled business Broker will diplomatically field and address sensitive questions and issues that, if left directly between the buyer and vendor, might damage or ruin the prospects for completing a deal. Brokers that can address the concerns of one side without offending the other are invaluable to the negotiating process.

For more information contact us at info@businessbrokerspain.com

Published in Blog
Wednesday, 06 May 2015 15:57

Spanish Success Story

Susie & Andrew - Maserof Kennels

Business Broker Spain's client Susie Western had a dream to follow her passion for dogs and leave the UK to purchase a dog kennels here in Spain. Susie wanted to do this on her own, a brave move for some, but Susie embraced the challenge and followed her dream, yet it didn't turn out quite as she could have foreseen!

Susie - Maserof KennelsBusiness Broker Spain worked closely with Susie prior to her viewing trip to fully understand her needs and budgets. We prepared a portfolio of businesses for Susie, and once she had signed our Confidentiality Agreement we were able to send her the full prospectus for each business she was interested in.

Viewings were arranged and Susie came to Spain, we accompanied her on the viewings from Cartagena to Jalon offering our advice where it was needed. Susie fell in love with Maserof Kennels on the outskirts of Jalon, an offer was placed and after some negotiations she managed to have an agreement. The completion was in June 2014 and Susie has never looked back!

It's been a hectic time for Susie, she has rolled her sleeves up and begun reforming the kennels, and making a home, working 7 days a week to do the improvements, which she certainly has done, the kennels are looking fantastic. The business is buoyant and very busy, new clients arriving all the time from recommendation from happy clients. Word of mouth works wonders for business!

Not only has Susie built a very successful business, she has found time for love! Having just got married! She met her fiancée in England, prior to coming out to Spain on her own, they kept in contact and as they say the rest is history!

Not every story you read about ex-pats coming to Spain is doom and gloom, there are plenty of success stories, but they don't sell newspapers! Many of our clients came to Spain with a plan, worked hard and have been very successful

Business Broker Spain offers Susie & Andrew every success in their future together and we wish them well in continuing to build their super business Maserof Kennels.

Follow your dreams, and Business Broker Spain will help you achieve them.

We received this testimonial from Susie

Susie & Andrew - Maserof Kennels"Nigel went the extra mile throughout the process, from helping me to arrange an itinerary of prospective purchases, through weighing up the pros and cons of the businesses to ensuring my chosen business purchase proceeded smoothly for me.
Nigel's assistance in helping to make the contacts required here in Spain, even after the business purchase had been completed, proved his dedication to his clients, willingness to help and the emphasis he places on client after-care.
Nigel is trustworthy and very passionate about his business and really works hard on his clients' behalf to ensure their dreams come to reality.
I have no hesitation in recommending Business Broker Spain to anyone that is considering purchasing a business in Spain."

Published in BBS
Tuesday, 24 March 2015 12:16

Investments

Investments

Business Broker Spain has handpicked strong investment opportunities for the discerning investor.  Whilst ultimately representing our instructing client, we respect the fact that those seeking to invest in new opportunities are themselves, successful entrepreneurs and have achieved such status only by making many shrewd investments over a period of time.

Our aim is to work with you, to assist in developing your investment portfolio. We listen intently to your requirements and seek to fulfil your objectives swiftly and efficiently.

If we currently do not have for sale the investment opportunity that you are seeking we are more than happy to go into the market place and source suitable opportunities for your consideration.

Please remember that the value of your investments and any income from them may go down as well as up and you may not get back the amount originally invested.

For more information contact us at info@businessbrokerspain.com

Published in BBS
Saturday, 21 March 2015 12:35

Buy a Business

Buy a Business

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.

Buying a Business in SpainOur services to buyers include all of the following and more!

Personal Guidance and Viewings

Business Planning

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.

Freehold Opportunities

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 info@businessbrokerspain.com

Published in BBS
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