Looking forward to 2014

2013 has been a  very interesting time for the business sales sector for lots of reasons. Whilst we were still in thick of a tough period for funding and sales, in general the market has continued to hold up well and sales have continued to happen especially in the Care Sector.

The main difference in the market from previous years is that all sales need more attention and TLC from start to finish. This may seem obvious as deals can always fall over but in the past it would have needed to be something quite drastic for this to happen whereas in the current climate some of the smallest issues that have arisen in the sales process have seen deals potentially fail.

This is where Amberglobe has gone that extra mile for its customers buyers and sellers: when we secure an acceptable offer we then introduce an experienced finance broker to the buyer who if required is able to access some of the most competitive deals in the finance market. As we all know dealing with the banks and funders direct is almost impossible so this help is crucial.

With funding agreed the next hurdle to get over is instructing the right solicitor to complete the transaction. Time and time again we see buyers fall into the trap of using solicitors that may be keen for the business but are just not used to dealing with business and company sales. We have drawn together a group of solicitors across the country who are able to offer both buyers and sellers a professional and competitive service backed up by years of experience  in business sales. Time and time again the feedback we get from clients is glowing.

As we progress into 2014 there is little doubt that buyers’ appetite for quality business opportunities is continuing to grow and we anticipate that the trend for multiple offers on high quality businesses will also continue. However this must also be balanced with the fact that the majority of sales need to be ratified by a buyer’s lender and they do still have strict lending criteria where valuations need to stack up on comparable evidence of similar sales.

The market remains pretty much the same as it has done for the last six months and probably will do for the next two years:.....a steady stream of buyers, and a solid level of sales provided that asking prices and vendor expectations are sensible.

The Leisure and Retail sectors remain extremely challenging and with the seismic shifts happening in those sectors I doubt that things will ever be the same.

As for Day Nursery sector there was an alarming suggestion in the papers recently by OFSTED that the free childcare subsidy should become means-tested. I think that such an idea would be hugely damaging to the childcare industry and should be resisted at all costs. These people in the civil service seem to exist in a parallel universe and simply don’t seem to understand the financial constraints under which the vast majority of parents are already labouring when it comes to paying for their childcare!

On the good news front we are seeing increasing levels of borrowing as the major banks slowly emerge from rebuilding their balance sheets and some but not all, are starting to lend more freely. We are also much busier with viewings and offers at this traditionally quiet time of year than in previous years which hopefully bodes well for the new year.

Deals however remain tough to do and are often taking many weeks to complete. You as vendors and we as agents have to have the patience of a saint to put up with the seemingly endless and annoying demands of purchasers and their lenders!

I read with interest Vince Cable's suggestion last week that the government should establish a "People's Bank" to fund business and kick start the economy. Hang on Vince I thought we already owned two banks with well-known brands, large capital asset bases, hundreds of branches and thousands of employees - they're called RBS and Lloyds. Rather than being in thrall to bankers, perhaps the government should instead start exercising its powers as a shareholder and get those two banks to start lending more to business!

I would expect the market to pick up noticeably now the Paralympics has finished. We are now seeing the government enter the second half of their term in office and consequently I am sure that they will be doing everything they can to stimulate the economy to ensure that by election time, things will be bubbling along. However I believe that the fundamental issue is that unless consumer confidence returns in force, no matter how much money the government puts into the economy, things will remain muted. This is something of a paradox in that on the one hand the banks and the government are telling us that debt is bad and we all need to pull in our belts and yet if the consumer doesn’t start spending again the economy will remain flat. For me, this paradox therefore points to a fundamental rebalancing of the economy where we will see lower levels of spending as a long term trend and I guess we all need to get used to that. Property prices outside London will also therefore remain flat or possibly negative for a number of years until the average house price equals roughly 4 times the average income.
There will also be another significant shift in the coming years as more baby boomers retire and either sell their businesses (if they own one) or buy a business to support their pensions. One trend that is already happening in Australasia is groups of retirees clubbing together to buy a business and to bring in a younger working partner who owns a share of the business and actually runs the business on a day to day basis, while using the knowledge and experience and cash of the retirees as and when required. TI believe that this is a very interesting development in business sales and given the poor returns from traditional pension investments, I suspect that these sorts of buying groups could be making an appearance in the UK in the near future.

Sold! Marlborough Day Nursery in Coalville

Amberglobe are delighted to announce the recent sale of Marlborough Day Nursery located in Coalville, Leicestershire. This was a rare thriving management run high profile Children's Day Nursery which boasted an 'Outstanding' Ofsted rating and an annual fee income in the region of £575,000 with healthy profits to match. Included within the sale were several valuable freehold properties. The now former owners Gail and Peter Hodgson comment:   "From the moment we met with you Nick, we knew you and your company were the right people to use to sell our day nursery.  Your enthusiasm and experienced guidance helped the transaction process run very smoothly.  We would be more than happy to recommend you to anyone thinking of selling a day nursery. Thanks again for your help" http://www.amberglobe.co.uk/UK-Business-Sold-by-Amberglobe-High-Profile-Thriving-D-Nursery-ref-2539

Wedding/Events Florists in Oxford sells

Amberglobe are pleased to announce the sale of this established thriving Event/Wedding Florists which specialises in providing an extensive range of floral designs for weddings, large corporate events, fashion shows through to individual parties and for numerous local businesses and hotels etc. With an impressive annual turnover of £223,000 and low overheads, this is an ideal venture for an enthusiastic new owner operatorhttp://www.amberglobe.co.uk/UK-Business-Sold-by-Amberglobe-Wedding-Event-Florists-ref-2478. The business has been acquired by a first time buyer looking to expand into this industry.

Amberglobe instructed to sell Supermarket in Spain

Amberglobe have recently been instructed to sell this established high turnover supermarket which is located close to Malaga in Spain. The business has been built up over the years and is now a thriving Supermarket which boasts annual sales of 570,000 euros. With a realistic annual rent and the scope and potential for enthusiastic new owners to continue to grow the business this could be the perfect opportunity to live the dream! http://www.amberglobe.co.uk/High-Turnover-C-Store-in-Spain-ref-2579