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Updated 21 February 2007.
- What is the difference between purchasing a business Freehold or Leasehold?
- What does SAV mean?
- I've found the business I want to buy but my bank have turned me down for a loan. What can I do?
- Is your service free to Buyers?
- I've not bought a business before. How long does it take?
- A business I am interested in is shown as "Under Offer". Why are you still advertising the business?
1. What is the difference between purchasing a business Freehold or Leasehold?In effect, if you purchase the Freehold Fixtures & Fittings and Goodwill you will own the property as well as the business. If you purchase Leasehold you will own the business and fixtures and fittings and the right, usually for a given period, to occupy the business premises for an agreed rent.
2. What does SAV mean?SAV means Stock at Valuation.
Most businesses sell a product and to enable their customers to have a choice they hold a certain amount of stock. When you buy a business this stock is not usually included in the asking price for the business.
For example, a ladies or gents clothing outlet will have a certain amount of stock which includes what is on display and what is in the store room. When you buy the business you may need the stock to carry on trading while you introduce your own lines. So the value (cost price) of the stock is calculated and paid for when you take over the business.
3. I've found the business I want to buy but my bank have turned me down for a loan. What can I do?We are able to assist buyers with finance, our lenders can often put together a financial package when other lenders (high street banks, building societies etc) fail.
If you are looking to buy a business, leasehold or freehold and your credit rating is less than perfect or you have been turned down elsewhere then contact your local Adams & Co Office, we just may be able to help.
4. Is your service free to Buyers?Yes, our service is free. We are happy to offer Buyers professional advice on many aspects of buying a business; from helping to identify the business that is right for you, explaining the various methods of financing your investment, choosing a solicitor or simply explaining the transaction process through to completion in an easy-to-understand and "jargon-free" manner.
5. I've not bought a business before. How long does it take?The transaction starts with arranging an appointment with us to view your chosen business. Once you have met the Owners, we will provide you with the latest profit and loss account information on which you can base your offer. Once your offer has been accepted, you should allow 6 to 8 weeks for both sides' solicitors to agree the draft Sale and Purchase contract details. Once both sides are in agreement an Exchange of Contracts can take place. During this period, buyers generally sort out their funding requirements. If it is a leasehold business, this period is also used to gather references for the Landlord. Once the Landlord is satisfied, a licence to assign the existing lease is granted and the transaction can then move to an Exchange of Contracts and Completion.
6. A business I am interested in is shown as "Under Offer". Why are you still advertising the business?Unfortunately for Vendors it can happen that after accepting an offer, secured with a refundable deposit, the buyer withdraws from the transaction. This can happen for a whole host of reasons. For example, unexpected health or family problems can arise which force buyers to change their plans. In that event, we would contact other intersted buyers registered on our database and let them know that the business is "back on market". By registering your interest in a business that is shown as either "Sold - Subject to Contract" or "Under Offer", you may find that you can still make an offer for your preferred business should negotiations betwen the parties fall through. You may have experienced this unexpected turn of events in the residential property marketplace for example.
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