Achieving the best price for your pub

A pub sale can be well planned or forced upon the owner in no time at all. Here’s how to get the best deal...

For some, the timing and circumstances determining the sale of their business is considered and planned well in advance. For others, it may be hoist upon them by
circumstances unforeseen.

I conducted a quick analysis as to what the reasons were for recent sales we concluded this year. Bearing in mind Davey Co is essentially a private client agent, this will hopefully make interesting reading if you are an owner-operator.

Reasons for selling Q1 and Q2 in 2015:

• Retirement: 35%
• To acquire another business: 25%
• To concentrate on other sites: 20%
• Moving out of the trade: 10%
• Ill health: 5%
• Moving abroad: 5%

Given the top three reasons for selling, you would expect these clients to have planned and prepared well in advance for their sale. Well, some yes, some no. For those that did, the sale terms we agreed for them were bang on the money, for those that didn’t, we had to convince buyers to commit at the level we needed.

If you want to stack the odds in favour, follow these top tips:

Take advice early

Your business may well be primed perfectly for the market. It may not be. You will not know until you consult a specialist agent, who will cast an experienced eye over all aspects of your business and provide professional advice as to what you can expect to achieve.

Be prepared

Get your financial information up to date. Even if last year’s accounts are not complete, have your last VAT returns and monthly management accounts ready. This adds credibility and confidence for a buyer.

Business as usual

During the marketing phase, you must continue to trade as usual. Take bookings, keep on top of service, keep driving. Do not disengage, do not lose your enthusiasm and do not abdicate from your role as the business owner. If you do, a buyer will detect this and seek to take advantage in negotiations.

Use a competent agent

Not all agents are the same. Merely putting your business on the market is not enough to sell it. Specialist market knowledge, effective marketing and reach into the target market audience for your business are key to achieving the best price.

Sale agreed

Agreeing a sale is, for a competent agent, the easy bit. Exchange of contracts and completion is where the work starts. Liaising and driving the various lawyers involved, chasing certif-
ications and compliance issues, dealing with dilapidations, driving the assignment process on leasehold assignments and other matters needs to be dealt with. Relying on your solicitor alone to drive all this forward can be a very brave and frivolous call.

Paul Davey