We’ve put together a couple of the most frequently asked questions we get asked on a day to day basis.
If you can’t fins what you are looing for, please do not hesitate to get in touch with one of the team!
What is the difference between purchasing a business freehold or leasehold?
If you purchase a freehold, you will own the property as well as the fixtures & fittings, goodwill and the business. If you purchase a leasehold you will own the fixtures and fittings, the right and the business. This is usually for a given period, to occupy the business premises for an agreed rent.
What does SAV mean?
SAV means ‘Stock at Valuation’. Most businesses sell a product and to enable their customers to have a choice they hold a certain amount of stock. When you buy a business this stock is not usually included in the asking price for the business. When you buy the business you may need the stock to carry on trading while you introduce your own lines. So the value (cost price) of the stock is calculated and paid for when you take over the business.
What are A1, A2, A3, A4, and A5?
Local authorities grant ‘permitted use’ designations to premises in their area; these are the most usual categories.
Is your service free to buyers?
Yes, our service is completely free! We are happy to offer buyers professional advice on many aspects of buying a business; from helping to identify the business that is right for you, explaining the various methods of financing your investment, choosing a solicitor, or simply explaining the transaction process through in an easy-to-understand and “jargon-free” manner.
I’ve never bought a business before. How long does it take?
The process begins with arranging an appointment with us to view your chosen business. Once you have met the owner(s), we will provide you with the latest profit and loss account information, which you can base your offer on. Once your offer has been accepted, you should allow 6 to 8 weeks for both sides’ solicitors to agree the draft Sale and Purchase contract details. Once both sides are in agreement an Exchange of Contracts can take place. During this period, buyers generally sort out their funding requirements. If it is a leasehold business, this period is also used to gather references for the Landlord. Once the Landlord is satisfied, a licence to assign the existing lease is granted and the transaction can then move to an Exchange of Contracts and Completion.