THE AGENTS

Graham Allman

Managing director

GA Select

In my 35 years of pub sales experience I have never known such a vibrant market as we are witnessing now and I don't see any immediate end to it.

Following our report in the Morning Advertiser (1 March 2007) where we predicted that 2007 could be the biggest business transfer year on record, I can confirm that the momentum has carried on right through March.

At GA Select we have seen in excess of £8m worth of deals taking place, including seven freehouses and six leaseholds.

In April we have a large number of deals potentially coming to fruition, including five freehouses, each valued above the £1m mark.

However, the deal has to stack up financially and "tick all the boxes" if it is to attain premium prices.

Many of these freehold sales are undertaken on the instruction of retiring clients who do not want to risk leasing out their pub, as they might have to return to run it again in their mid 60s, by which time their outlet's value may have dropped 50% due to a failed lessee.

We always advise such clients to sell up and invest their capital tax efficiently through our partner company Norwich Union, which is happy to advise on all relevant concerns to do with capital gains, inheritance tax and income tax.

After all, why give your hard-earned money to the Government when your own family could benefit from it?

Another favourite is sale-and-lease-back: the popularity of this deal is clear, and we have five on the go at the moment.

We believe this to be an excellent route for pub owners to take, as it gives them a large up-front capital figure that they can invest or use to purchase a retirement property.

This way, they can gradually ease themselves into semi-retirement and enjoy the added benefit of the profit from the assignment sale of the lease further down the line.

A word of warning, though: don't just accept any offer that comes direct from a pub company or their agent.

We will carefully assess the field for the best and most appropriate deal. In the past we have negotiated as much as £200,000 more than the figure quoted in a direct approach from a pub company.