We often write blogs about how to prepare to buy or sell your business, or on the best way of buying a franchise. But this time we thought we would give you an overview of what we do!
We are a dedicated franchise resales broker. You might wonder what exactly that means, so we are going to explain. We work exclusively with franchised businesses. Helping franchisees and franchisors who want to sell their business. We match the businesses with prospective buyers who are looking at buying a franchise and we include in the process the franchisors who are involved in the overall buying and selling process.
What do we do for Franchisees?
We help franchisees who are ready to sell their business. Starting with a free market appraisal and a conversation about what they would ideally like to achieve from the sale of their business. We discuss timescales and what kind of price they would like to achieve. We advise on whether the business is in the right position to sell.
If the sale of the business is not urgent we sometimes advise that the seller works in it for a while longer to increase turnover and profits to enable them to achieve a better sale price.
Once a decision to sell has been made and contracts are signed, we work through a prospectus information form. This document contains all of the information about the business. We will then use this information to create a prospectus of sale and an advert for the business.
We advertise the business for sale on a number of websites as well as sending out email adverts to our database. Our database is made up of people who are specifically looking to buy a resale business, and are just waiting for the right one to come along.
Our database can match prospects to businesses they might be interested in. These people are contacted as a priority. Once we have a potential buyer who is suitable for a business they will follow our process that includes; financial prequalification, meeting the franchisor for approval, and meeting with the franchisee to actually touch and feel the business they are looking to buy before making an offer.
Once an offer is accepted and terms agreed by all parties the legal process will begin. We will work with the seller, the buyer, the franchisor and the solicitors involved to help make the process as smooth as possible.
What do we do for Buyer’s?
We deal with new enquiries for businesses we have for sale every day. We start our process with prospective buyers by finding out some basic information to ascertain if the business they have inquired about is right for them, and if they are right for the business. We then ask them to sign a Non-Disclosure Agreement (NDA), and only then will they be given more information about the businesses they have enquired about.
We spend time getting to know them so that we can help them to buy the right business for them. We talk about their financial situation as well as checking that they have the skills that are required to be successful in their chosen field.
Once the prospective buyer has expressed a serious interest they are financially prequalified by our contacts in the finance sector to ensure that they will have the funds available to buy the business in question.
When the financial prequalification has been approved the prospective buyers will usually meet with the franchisor first. This is to make sure that they they have the skills and attributes that the franchisor is looking for, and that they understand what the franchisor expects from their franchisees.
It means that when they eventually get to meet the seller they understand exactly what the franchise is all about, and will be able to work within the parameters of the franchise agreement. If the buyer is approved at this stage they will then be able to meet the franchisee and take a look at the business itself.
We encourage the buyer to do as much due diligence as possible. We assist in this process by liaising with the buyer and seller to ensure that any questions are answered.
Sometimes the buyer is not right for the franchise or they decide the business is not right for them. In these cases, we often develop good relationships with prospective buyers and try to assist them in finding their perfect business.
We work with a number of franchisors for many different reasons. Initially, we encourage franchisors to talk to their franchisees to plan for a return on their investment. We attend franchisor conferences and offer training for franchisors and their franchisees on the benefits of exit planning.
We work hard to develop good relationships with franchisors and to understand their standards in order to find the right buyer for their franchisees business.
So whether you are a franchisor, franchisee or a prospective buyer we can help you with the franchise resale process. If you would like more information or to discuss your business in detail, contact the office on 01522 246811 or visit our website www.franchiseresales.co.uk.