FAQs

Q. How do you value a business?

A. Generally we use the profit valuation method to estimate the value of your business. By multiplying the net profit before tax by a given factor, a purchaser can more accurately determine how many years it will take to recoup their original investment. Other factors such as physical fit out, location, and reputation will also influence the asking price.

Q. What do you require from me to prepare my business for sale?

A. To help us in preparing your business for sale we would require the following:

• Copy(s) of lease or licence
• Financials for at least 3 years
• Depreciation schedule of plant & equipment

Q. What types of businesses do you sell, and what is the smallest business you handle?

A: We specialise only in Bars, Restaurants, Clubs, Resorts, Theme Parks and associated Hospitality & Tourism Business And Freehold Sales only, and generally sell businesses from $750k upwards. We do however at our own discretion consider at times smaller businesses pertaining to the Hospitality & Tourism sector based on the merits of the business and its future potential.

Q: Would you take a business on if you thought you could not achieve the asking price?

A. Simply no, we do not want to waste your time or ours, we will give you our honest opinion of what we believe we could achieve for your business. Although we cannot offer any guarantees we can achieve the price or even guarantee your business will sell, however as our remuneration is based on a success fee of no sale no fee it is in our interest to take on businesses we believe we can truly sell.

Q. Do you charge for advice?

A. We offer a free 45 minute obligation free consultation in the absolute strictest of confidence, to answer any questions you have or give you a rough idea of what sale price your business can achieve. We highly recommend if dealing with us for the first time, you seek a second opinion from another experienced and reputable broker.

Q. What lease term do we need to provide to an ingoing purchaser, and can our landlord refuse an assignment of lease?

A. Generally speaking the longer the lease the better, there should be at least a minimum of 15 years to allow an incoming purchaser a few years to recoup their investment and ensure that they have enough tenure left for the next buyer when it comes time to sell. This is only a general rule and does not apply to every situation. For example some shopping centres only offer 5-year leases at any given time. Generally, a landlord cannot unreasonably refuse an assignment to a bona fide tenant.

Q. We want to sell but are concerned if our staff find out they will leave?

A. We understand how important it is that confidentiality be maintained when transacting a hospitality business, and appreciate the necessity to shield retained staff and the competition from the intial process. All prospective buyers are pre - qualified and sign confidentiality agreements and non - disclosure statements prior to any release of sensitive information.