If you’re thinking of selling your pub, here is some advice on selling a business and the best way to do it.
Selling a pub can be an exciting but overwhelming prospect, especially if you’re not sure where to start. Have you decided it’s time to move on? If so, you’re probably hoping it’s a straightforward, fast and cheap process to sell your business.
In recent years, the UK’s pub industry has changed dramatically. This means it’s even more important that selling your pub goes smoothly. With several pubs shutting down across the country, it could be the perfect time to hand over the reins to a new buyer; someone who could give your pub a fresh lease of life.
With 0% commission, no contracts and expert professional support, Bizdaq can make the sale of your pub cheaper and easier than you think. However, it’s crucial that you first understand how to prepare your business for sale.
So, how can you make sure you’re following the best way to sell a business? Our guide to selling a pub is here to take you through the process.
In this guide, we will help you with:
- Identifying your business’ USPs
- How to prepare to sell
- Valuation of your pub
- How to carry out due diligence
- Other advice on selling a business
Identify Your Pub’s USPS
To find the right buyer when it comes to selling your pub, there a few steps you can take. It’s important to showcase your pub in the best possible light. At Bizdaq, we help you to do this by combining technology with professional support on our very own selling platform. This ensures you can sell your pub with minimum hassle and maximum benefits.
Pubs might all have the same concept behind them, but each pub is completely different. Identify what makes your pub unique, and why your customers come back again and again. This can help to attract the right buyer who would be interested in taking over such an establishment.
Preparing to Sell Your Pub
Selling your pub could be the perfect opportunity to move on to a new experience. Perhaps the busy nature of a pub is no longer appealing, or you’ve simply found a new venture that you want to pursue. Whether you own a freehold or leasehold pub, selling your business can come with its challenges. It’s important to be prepared and to understand what could be a complex process.
1) Finding Out the Value of Your Pub
It would be worthwhile getting a valuation of your pub before you begin the selling process, so that you understand from the outset, before finalising the price. We offer a simple, free business valuation tool that can help you get a good idea of your business’ worth.
2) Preparing the Sale
Agreeing on a price and structure is a critical part of the process, and it will no doubt involve sharing information with your buyer. You should carefully consider whether you want to create a confidentiality agreement or a non-disclosure agreement. This could be very helpful.
It’s important to note that if you are a tenant in a leasehold pub, you are required to have the landlord’s written consent first. This can help to avoid any problems once the sale is complete.
The buyer will likely want to know as much as possible about your business; after all, they are about to buy it! This is the stage known as due diligence. You should think about how you can present any information about your pub in a positive light, and ensure there are no hidden skeletons.
While full disclosure is important, it would be wise to manage this stage of the sale efficiently. Consider your data and documentation in a way that showcases your pub optimistically.
4) The Memorandum of Sale
During the process of selling your pub, you will likely be asked to sign a Memorandum of Sale or Heads of Terms. While this isn’t legally binding, it sets out both yours and the buyer’s expectations. You may want to consider taking advantage of an expert to provide a Heads of Terms agreement for both of you to sign. At Bizdaq, our platform will generate this once an offer has been accepted, with a business expert on hand to help with further guidance.
Understanding Due Diligence When Selling Your Pub
Due diligence is the official term for the investigatory part of the process, as mentioned earlier. Many business sales can collapse at this point, for several reasons. It is at this stage you should be maintaining buyer confidence and offering transparency. However, remember that you might want to release confidential information only when you think the buyer is fully committed to the sale. It’s important, to be honest at this stage; you don’t want the sale of your pub to fall through because you left out key information.
Other Advice on Selling a Business
The to-do list when selling a pub can seem overwhelming, but having a full understanding can ensure a simpler process. The Business Sale, or Purchase Agreement, will be drawn up with information on warranties and indemnities. You must understand exactly what you’re agreeing to, as this can avoid any future problems down the line.
You should also be aware of TUPE legislation, which preserves employees’ terms and conditions when a business is transferred to a new employer. TUPE applies when your employees’ jobs are transferred over to the new company and continuity of employment is maintained.