Friday, October 9, 2009

Preparing Your Business For Sale.....,

When selling your business, it makes good sense to present your property in the best shape if you want to maximize your investment.

When entering the property, the first impression the client sees is a lasting one.

If you are in an area where landscaping and greenery are evident, it is important to have the shrubbery trimmed, grass manicured and the flowers looking their very best. Organic fertilizers are the way to go and displaying evidence of this in strategically located areas, will show to your client, that you are thinking GREEN.

If you are like most properties, and have a paved parking lot, you should look at having it sealed and new lines painted. The client will notice this immediately and will demonstrate pride of ownership. If you have concrete or interlocking brick, you may want to power wash to give that clean look. Sweep the greenery and dust that has accumulated in the gutters and borders of the parking lot.

These aesthetically pleasing upkeeps are not costly... only labour is required.

At this stage, the client should be feeling good about the property.

When he/she walks into the lobby/office, small or large, this area should be decorated suitably. The employees behind the desk, should be dressed appropriately to greet clients. A professional operation will assist in the sale of the property.

The rooms should be clean, clean. The mattresses and bedding be of good quality. The rooms to be as modern as one’s budget will allow. The bathroom taking centre stage with more detail given to cleanliness, no mould around tubs, and all caulking in good repair and applied professionally.

This is very important for the prospective buyer. Financial performance is the main criteria for valuing any business. The bottom line cash flow is the main element which determines value unless you are in a re-developing area and land value is the greatest determining factor. Having three previous year’s financials, including monthly sales for that period plus monthly income and expenses, from the last year end date to the present time will satisfy the prospective buyer and for the appraiser if a contract is written.

Have a record of improvements completed, to the property, in the last two years, be they, physical improvements or promotional and marketing initiatives put in place. An example could be, website development or anything which may enhance future prospects. Buyers sometimes only see what needs to be done and are oblivious to what has been accomplished. Bring it to their attention through your sales representative.

Remember when obtaining a price from a professional, he has not sentimental feelings to the property and will usually give you an honest opinion. If you are not happy with his evaluation, you can always get a bank approved appraisal because this is want the bank is going to lend on, in the end.

Jerry Dombowsky
Premier Hotels and Motels - The Connections to close the deal
#6-3185 Via Centrale, Kelowna,
British Columbia V1V 2A7
Phone: 250.717.1886
Fax: 250.765.0577
Toll-Free: 1.866.765.0579

BC motel realtor, selling hotels in BC