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
Friday, 31 March 2017 09:47

The Trump & Brexit Effect

Brexit

June 23rd 2016 - The UK referendum on leaving the European Union, the result shocking the rest of Europe and the World and sending markets in turmoil. Then on November 8th, 2016, the world was stunned to learn Donald Trump was going to be the next President of the United States of America.  Both results were unexpected and the consequences will change the world as we know it.

The UK Prime Minister Teresa May has now triggered Article 50 to leave the European Union and the Brexiteer's rejoice with cries of freedom and gaining "our country back".  Whether you agree or don't agree with Brexit one thing is for sure, there is great uncertainty in the markets and this will be the case for the next two to three years. Coupled with Donald Trump as President of the USA with his intention to put “America first” and Asia’s focus on trade liberalisation and globalisation will have a dramatic impact on trade for years to come.  Ayhan Kose the World Bank’s director for development prospects says “Because of the outsized role the United States plays in the world economy, changes in policy direction may have global ripple effects. More expansionary US fiscal policies could lead to stronger growth in the United States and abroad over the near-term, but changes to trade or other policies could offset those gains.”

So what's the effect of these two results on business in Spain?  To be honest we saw deals collapse on the referendum result as the initial shock and uncertainty was too much for clients to comprehend when they were about to sever ties with the UK and purchase a business in Spain, and we totally understand this.  Enquiry levels dropped and as a business we saw levels drop to the recession days again, all very worrying. However there seems to be a silver lining which is very interesting.  We are receiving numerous enquiries from the USA, we always have but not in the numbers we have seen recently, and speaking to clients the reason is the "Trump effect".  The clients we have spoken to don't want to be a part of Trump's new America and they are looking for a safe alternative in Spain.  The UK market for us seems to have levelled and we are sure on one of the reasons for this is weak Sterling, clients are waiting for a better exchange rate.  However we strongly believe that there will be a "Brexit effect" and people will want to move away from the UK and come to Spain to start a new life and hopefully be a European citizen.

The world is changing and this offers new challenges to businesses and we must grasp these and turn negatives into positives.

Published in Blog
Saturday, 21 March 2015 12:41

Euro Weekly Write Up


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

Example

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.

Future Issues

• Sell a Business
• Maximising Profits
• Branding & Marketing
• Operating Systems
• Forming a Company

Published in Blog
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