💡Are you thinking about selling your hospitality business?
As a hospitality broker, I am contacted by multiple business owners at a time requesting an appraisal for their hospitality business, with a view to selling.
But one major obstacle which many owners have not yet considered is the state of their existing lease or the fact their lease is about to expire altogether.
Here's the advice I give them, which I want to share with you too.
Before listing your business for sale, securing a new lease, or refreshing your lease terms is crucial for a business owner for the following reasons:
⭐Control:
When you go to market, it's essential that you do so ‘on the front foot’.
Securing a commercial lease with a term of at least 5 or 6 years (including options) means you have much more control and a higher chance of securing a successful outcome.
By doing this, a prospective buyer is much less likely to request changes to the current Lease; changes that you are unable to represent, and which may impose further conditions to your sale.
⭐Value:
A long and favourable Lease provides business stability, and viability; which enhances the business's appeal to potential buyers and increases the perceived value.
This reinforces the likelihood of a positive return on investment, meaning the business can command a higher price.
⭐Simplicity:
My experience has shown that favourable lease terms positively impact the sales process, minimising potential delays and legal uncertainties with the contract; which all contribute to a more streamlined sales process.
Taking these steps has helped many of our clients achieve a much better sale price.
What helped you navigate your business sale?
If you would like more information, please visit our website www.RetailBusiness.com.au
And if you need assistance selling your business, please email me at info@retailbusiness.com.au or Titania at titania@retailbusiness.com.au
Take care,
Barn
⭐Retail Business - Hospitality Brokers⭐