Advertising a Retail Business for Sale

What to Do Before Advertising a Retail Business for Sale

Is the lease on your retail business premises about to expire, and you have made sufficient income over the years to move onto another type of venture? Perhaps your spouse received a job offer in another province and to make the most of the opportunity, you will have to move shortly. Rather than closing the store and selling the stock out on a clearance sale, you may want to advertise the retail business for sale.

However, putting the retail store up for sale before you have calculated the stock value, assets and goodwill payable is a mistake. Preparing it before advertising it as for sale will help you receive a market related price, even if it is an urgent sale. To this end, it is certainly beneficial to work with an experienced broker firm. Here’s why:

·         Expert advice on the documents and information that will be needed for the sale,

·         Guidance regarding market related prices for the particular type of retail store,

·         Local, provincial and national marketing exposure to generate more interest,

·         Proper valuation and the correct formula for establishing the book and market value,

·         Brokers screen interested parties and thereby prevent browsers and scam artists from wasting valuable time,

·         Objective assessment to help determine if your venture can be sold,

·         Guidance on how to prepare the retail business for a successful sale,

·         Tips on what to avoid during the process,

·         Contracts and agreements, which are drafted in compliance with the various laws,

·         Guidance on how to publish the notice of the business sale in the Government Gazette as required.

However, even before you approach our brokers, you can take a few steps to speed up the process in getting the business ready to advertise. If you have not yet done so, prepare the following:

·         Bring the books up to date to ensure the broker can help assess the value of the venture.

·         The buyer will also want to view the financial statements as part of the due diligence process.

·         Get the contact details of the landlord.

·         Enquire about lease renewal terms and any requirements.

·         Make a list of fixtures that will stay as part of the premises.

·         List assets that form part of the sale.

·         Do a stock take to determine the current stock level with the cost and retail value indicated.

·         State the current hours of trade.

·         State restrictions on trade hours.

·         State the reason for the sale.

·         What is the weekly, monthly and annual turnover?

·         What is the annual gross profit?

·         What is the nett profit?

·         What is the minimum amount that you must receive to ensure all the debts are paid?

·         What is the amount you hope to receive?

·         How urgent is the sale of the business?

·         Have a copy of the current lease agreement available for inspection.

·         List the names, positions, salaries and work hours of employees.

·         How many years has the business traded at the specific premises?

·         What marketing do you perform at present?

By having the documents, answers and information ready when you get in touch with the brokers, you reduce the time it takes before the retail business can be advertised as for sale. View our seller checklist and get in touch for help to sell your retail store at the best possible price.