Time after time I am asked what is WIWO, and what does this actually mean?
The abbreviation for ‘walk in walk out' is widely understood by all, but expectations of what it means are mixed and varied.
So what is WIWO?
As far as the sales contract is concerned a ‘walk in, walk out’ means that there is no further consideration required for stock, eliminating the need to conduct a stock take and for the parties to come to an agreement over SAV (stock at value) upon handover. The WIWO practice is therefore commonplace with some café businesses which hold very little stock.
So why ‘WIWO’, and why not simply ‘including stock’?
The contract does not see any difference, however, it seems that each party likes to use the acronym to add to their proposition:
Some vendor’s like to use the expression to indicate that their business is more attractive for a buyer (the business is under full management, fire sale, equipment only sale).
Some buyer’s attach the expression to their offer to make it appear more attractive for a vendor (no further due diligence required, cash purchase, no training).
The devil is therefore in the detail! Make sure that you have a clear understanding of any additional terms attached to the WIWO being offered to you.
As with every business decision you make; always conduct your research, obtain professional advice and make sure that you know what is included and excluded from a business sale.
If you have any questions then please contact Barn on info@retailbusiness.com.au
We would also love to meet you to discuss the value of your business, or the business you intend to purchase, you can book this online using the following link www.retailbusiness.com.au/book-online
We look forward to hearing from you.
