Find the right business for you

Modern technology makes accessing businesses and properties for sale available to anyone, anytime, anywhere. But the sheer number and vast array of opportunities can be a bewildering choice. So which ones is right for you?

Freehold

With a freehold purchase, you can enjoy the freedom of operating your business on your own terms and in your own style, with the surety that you have equity to fall back on in terms of bricks and mortar. The ability to negotiate discounts on stock and manage outgoing costs can mean that any increase in turnover increases profitability and, in turn, the value of your asset.

Owners will have the choice of selling the entirety or engaging Sidney Phillips to create a new free-of-tie lease or tenancy, thereby enjoying a lump sum paid by a purchaser of the leasehold business and a rental income, whilst retaining the freehold interest which can be sold if required at a later date. Sidney Phillips works closely with a number of major investment companies and private individuals who seek to acquire top class licensed premises in order to expand their investment portfolios. The demand for freehold premises with tenants of lease agreements in place, generating a rental income, is high at present.

To see our investments opportunities for sale click here.

Tied & Partial Tie Leasehold

Many leases for sale will be subject to trade ties from a nominated supply (in most cases a brewery or pub company acting as the Landlord), meaning that you have to buy certain stock from them. Buying outside of this agreement can land you in hot water! The lease will govern, to an extent, the basis on which you operate the business and, more often than not, will stipulate your obligation to maintain fully the entire premises and insure against all property and trading risks at your own cost. The fundamentals of a tied lease are that you pay a premium for the lease upon acquisition and a rent for the duration of the lease.

Leasehold businesses are often acquired on an assignment of an existing lease where a purchaser acquires the remaining period of the lease from an existing lessee. Under the Landlord & Tenant Act 1954, the lease will normally be automatically renewable which should provide the lessee with considerable security of tenure, providing that the Landlord does not want the property back for their own use or occupation, development, or the lessee defaults on the lease terms.

To find leasehold premises for sale click here.

Free-of-Tie Leasehold

A free-of-tie lease will come with similar if not identical terms to a tied lease, but with the caveat that you can purchase stock from wherever you desire. The ability to negotiate trade discounts will inevitably make the business more profitable, so expect to see a stronger demand and potentially higher premiums for such leases. As free-of-tie leases are more desirable, a purchaser will need to make sure they are ready to proceed with a purchase quickly, as they often get snapped up quickly.

To see a range of leasehold premises for sale click here.

Do your research

Prior to viewing a business for sale, it is imperative to do your homework. All of the headline information you will need will be noted on Sidney Phillips's sales particulars available online or to download, but it will be worth considering the below in addition:

- Does the location suit you? Is it close enough to your required amenities such as schools, nurseries, rail connections etc?

- What is the local economy like? Are there plenty of high disposable income families in the area? Do the demographics provide you with sufficient opportunities to draw in custom? Are new houses being built in the area?

- What is the extent of competition? Think outside of the box, as many businesses have diversified in many years with, for example, a greater number of public houses offering rooms to let, not just hotels and guest houses.

- What are the Unique Selling Points of the business? Can you maintain or expand on these USPs to add value to your asset?

- Does the asking price fall within your budget?

Assess affordability

The cost of buying a business is not just the asking price, you will need to consider other initial costs such as purchase of stock, legal fees, surveyor fees, accountancy fees, licensing fees and, most importantly, ensure you have enough in reserve as working capital. If you are purchasing a leasehold business, you will need to demonstrate to the Landlord that all of the above are covered in addition to the purchase price.

If you do not have these funds available in cash, you will need to raise finance. You should do this well in advance of starting your business search, to prevent wasted effort in looking at businesses you simply cannot afford to buy. Specialist business mortgage brokers such as Sidney Phillips Business Mortgages have access to High Street banks at favourable rates as well as specialist lenders.

Our team will provide you with initial advice as to whether or not that dream business opportunity is within your potential budget and guide you through the entire application process.

Making an offer

Having done your research, viewed the business or property for sale and ensured you have the correct financial resources to proceed, you are ready to make an offer.

Assuming Sidney Phillips is the acting agent, we will request your offer in writing/email and discuss it with our client who will accept, decline or ask us to negotiate accordingly.

At this stage you will need to provide proof of finance, which will comprise proof of your ability to purchase the business. This can be in the form of a bank/building society statement, a letter from your solicitor confirming total funds, an official bank letter or a finance loan offer.

Legalities

Once an offer has been accepted, Sidney Phillips will request details of your solicitor and details of the purchase vehicle (ie. Limited Company, Sole Proprietor or Partnership). If you do not have a solicitor to hand that specialises in licensed property and business transactions, we can recommend tried and tested firms. Heads of Terms, outlining the agreed terms of sale will then be issued.

Your solicitor will undertake various due diligence tasks on your behalf, including financial, commercial and property enquiries, to ensure you know what you are buying.

In parallel with all the above, you will need (with the help of your solicitor/business advisor and accountant) to prepare and organise your business affairs, including but not limited to the following:

- Registering your trading entity: Sole Trader, Partnership, Limited Liability Partnership, or Limited Company;

- Register with HMRC for your business, tax & VAT purposes and staff PAYE;

- Secure supply agreements;

- Decide on changes to branding, marketing & promotional material;

- Set up your business banking;

- Organise your technology - EPOS, phones, PDQs etc;

- Organise suitable insurances – Sidney Phillips Insurance can assist in finding suitable packages at competitive rates;

- Check your utility suppliers – Utility Helpline can assist this and lowering future outgoings.

Once this has been done, and contracts agreed, you are ready to exchange contracts and complete on the sale.