Getting a move on

Selling your outlet doesn't have to be too stressful

So the decision to move on has been made. Whether it is a change in area, pub or even career that has prompted the choice, the "for sale" board has gone up outside and prospective buyers are, hopefully, queuing up to see what your pub has to offer.

But selling a pub is not simply a matter of sitting back and letting the agents work their magic. There are many things a publican can do to be sure of getting a straightforward sale at the right price.

According to experts, buying and selling property is one of the most stressful experiences a person can have - even ranking alongside divorce or the death of a spouse.

Selling a pub - which is, after all, a business and a home, bringing with it a double-whammy of stress - can raise blood pressure even higher.

But a common sense approach to selling, combined with a few extra touches recommended by agents, can make the whole experience, if not exactly pleasurable, then far less stressful.

A lick of paint and a quick tidy of the garden may be enough to sell a house but, because a pub is a business, selling it takes a lot more preparation and a great deal of thought.

Agents agree that whether you are selling a freehold or a leasehold property, the most important starting point is the accounts.

"In both cases it's most important that vendors have up-to-date accounting information," said Paul Reilly, sales manager at The Stonesmith Partnership. "You should have three years' trading figures - that's what the banks look for."

Andrew Whiteford, associate director of Chesterton, agreed. "Leaseholders should also have an understanding of their lease such as when was the last rent review and when is the next one," he said.

Cameron Campbell from Fleurets said: "I cannot stress how important this is. Most deals that fall through do so due to the lack of verifiable accounts." Bettesworths also recommends that accounts show the split between wet sales, food sales and accommodation.

Often accounts take a while to be completed and signed off. Many agents accept that accounts for the financial year ending April 2001 have not yet been produced - which could cause a problem for licensees wishing to sell.

Some agents recommend using the most current accounts, perhaps combining them with more recent VAT figures to give the buyer an idea about the business.

However, David Watson, head of pubs and inns at Robert Barry & Co, said it was important to start considering a sale months before the process begins.

"If you're even beginning to think about a sale it's important to make it clear to your accountants. That way they can produce the accounts, which are critical to the sale, more quickly," he said.

Having considered the business side of the sale, the practicalities of attracting potential buyers are not unlike those involved in selling a residential property.

Fleurets recommends that every potential purchaser goes undercover when thinking of buying a pub. Visiting as a customer means they can say immediately whether they want to pursue their interest or move on somewhere else.

"However," Cameron Campbell warned, "this does mean that the property needs to be presented in its best light at all times, because you never know when a potential buyer may pay you a visit."

According to agents, first impressions count.

"Imagine you were looking at your pub as a potential buyer," Andrew Whiteford recommended. "That garage you have always meant to mend - do it now."

Paul Reilly agreed. "Appearance is very important. If you have got bits and pieces to do, do it before you put the pub on the market," he said.

One part of a pub that is often neglected when licensees are preparing to sell is their own accommodation.

David Watson said: "I had a pub and I was working 18 hours a day, seven days a week. I understand you don't give a lot of thought to your home because you don't see it as part of the business but I believe it's as well to make your accommodation as nice as possible."

He also stressed the importance of appearance. "Every vendor I see tells me they've seen some awful stuff," he said.

Of course, before the sale can go ahead it is crucial to have the right people working for you in order to make things go as smoothly as possible.

"Instruct a reputable agent," recommended Cameron Campbell. "If the quoted asking price sounds too good to be true, it usually is. If the agent is prepared to spend its own money on advertising rather than yours, you are likely to get a better service."

Many agents recommend going for sole selling rights - which means you only have to deal with one agent and it reduces any confusion over multiple offers.

Dealing with an experienced licensed trade solicitor is also important - particularly for leaseholders. Although publicans may already have a solicitor who is an expert in other fields, it is much more useful to instruct one who is knowledgeable about the pub trade.

"Most of all be positive, otherwise your trade will suffer," Cameron Campbell said. "Be patient. It can take months to sell some properties so don't be fooled by the promise of a deal being agreed next week."

Points to remember when selling a pub​

Your agent will need:

• A summary of the last three years' abridged trading profit and loss accounts
• Copies of VAT returns (if in the middle of the financial year)
• A copy of the land registry plan
• Details of all employees
• A list of any items on lease purchase, hire purchase or free loan
• A copy of your justices on-licence, any supper hours certificate, gaming licence or public entertainment licence
• Details of any planning permission

If you are a leaseholder:

• Formally notify your landlords of your intention to sell
• Make sure you have a copy of the signed lease

Information supplied by Bettesworths​

Improvements to make​

External

• Clean up any rubbish, building materials or garden refuse lying around
• Spend a few pounds and hours beautifying the garden area - at the very least remove dead plants or hanging baskets
• Remove any graffiti from walls
• General minor repair of obvious defects

Internal

Trading area​

• Repair minor defects - missing door handles, missing or broken window panes, broken light bulbs and so on. Major changes are not advisable as a buyer will make changes, especially if it is a corporate buyer who may brand the pub

Private accommodation​

• Make sure the rooms are clean and presentable

Information supplied by Fleurets​

When a sale has been agreed​

• Instruct an experienced solicitor
• Arrange for the title deeds to be sent to your solicitor
• Discuss an inventory of trade furnishings, fixtures and equipment with your agent
• Give a copy of your fire certificate, if appropriate, to your solicitor
• Arrange for a stocktaker to visit the pub on the completion day
• Think about arrangements for advance bookings, pre-payment for advertising and so on
• Tell your staff - there is nothing worse than rumours and they should hear the news from you first
• Arrange licence transfer - check if you need to attend the full transfer or the application for a protection order
• Notify the VAT office, utility suppliers, insurance company etc.

Information supplied by Bettesworths​