Procedure After Instruction for Sale
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
Saturday, 21 March 2015 12:43

Business Plans

In the second of a new occasional series, Nigel Fitzpatrick from Business Owners Direct looks at the importance of having a business plan.

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.

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