THE AGENTS

Graham Allman

Managing Director,

GA-Select

My early view of 2007 is that it may turn out to be the

busiest business transfer year ever. The first two months have given us a positive taste of the year ahead.

Rising interest rates have not tempered the thirst of

market newcomers, while the forthcoming smoking ban seems to work to the advantage of sellers: this is especially true for those who have already tackled the opportunity, as many new would-be purchasers are showing strong interest due to the smoke-free atmosphere.

So far, we haven't seen the usual influx of properties

flooding on to the market - instead those up for sale tend to be robust businesses, many of which are retirement sales.

It used to be the case that when considering retiring,

freeholders would offer their treasured pub for lease as a continuing source of income.

However, free-of-tie leases are no longer the exception and are desirable in a similar way to many partially-tied pubs, especially where an alternative revenue source such as food or accommodation represents a large percentage of the total.

So, retiring freeholders may wish to consider alternative options for their pot of gold. One option is to sell the freehold and invest the money in tax-efficient schemes. My company has a link with Norwich Union, who not only advise on

investments but look after capital gains, inheritance tax and income planning tax. Why give it to the Government when you may be able to keep it in the family?

Another favourite move of those who are retiring is sale-and-leaseback. This enables a freeholder to take their capital gain, possibly buy that dream cottage by the sea or in the sun and still have sufficient financial resources to invest a large amount in a tax-efficient fund. And, of course, there is the added benefit of still being able to run the business for a couple of years to wind down slowly, and the advantage of a second capital gain when assigning the lease or even handing down the business within the family.

A key question always concerns the choice of pubco. We have arranged three such deals this year, each priced at more than £750,000. As we have independent status, we are able to find the best deal by talking to several pubcos. Approaching the pubco directly doesn't usually produce the best offer, so we advise against this.

During January and February we had under offer, with funding ready and solicitors instructed, more than £10m-worth of businesses: 16 freehouses and 17 leaseholds. If this continues, 2007 will be the biggest business transfer year yet. record.