JUST LISTED and available immediately. Fabulous Whitsunday lifestyle opportunity. New to the market and providing a fantastic opportunity for the right person, this Rent Roll provides an excellent opportunity for someone considering a lifestyle change in paradise.
JUST LISTED and available immediately! A must view for those in the market! This is a great quality portfolio of approx. 161 Managements boasting impressive returns.
JUST LISTED!!!! Fresh to the market, so fresh we are still getting all the information together… This is a well run, small to medium portfolio of around 75 managements in the the South/West corridor.
NEW LISTING – Available immediately is this high profile agency with rent roll located in the Northern Suburbs…
Just listed and already generating strong enquiry! Great quality portfolio of approx 168 Managements.
New listing!!!!! 215 Managements – Brisbane Southside…
Just listed!!!!! Approx 210-230 Managements – Perfect size for a new business or expansion!!!!
This is the perfect portfolio to add to your existing business or to start up a new agency.
PRICE REDUCED – Must be sold – Enquire Now! This is a First Class business built from the ground up by the current owners. Available now, this is a fantastic opportunity for a new owner keen to dominate the local market. The business has solid local market awareness and a very well managed rent roll […]
by Kevin Hockey
Real Estate Agency Sales
A common question when a Seller wants to sell their business is “Do I have to provide a Profit and Loss?”
It’s important at this point for the Seller to put on their Buyers hat and ask themselves a few questions.
1. Would you buy a business without seeing vital income and profit data?
2. What would you automatically think if a Buyer said to you they didn’t want to provide a P & L?
Reality is no buyer will purchase your business without seeing a P & L. It just isn’t going to happen. Rent Roll yes, the Business no.
How do we deal with selling an agency where the Seller believes their P & L will appear less than favourable?
Here’s a few tips.
- The first thing is speak to your accountant and let them know you are considering selling and could they please provide a Profit and Loss for sale purposes.
It is normal business practice that any Directors costs such as wages, expenses such as cars, phones, personal add ons and any other costs directly attributable to the owner will be removed. It might just be the circumstances aren’t as dire as you thought although a buyer is likely to add back in their own estimates of these expenses.
- Take some more time before Selling and begin to make profit. This of course is much easier said than done and is rarely a viable option. In fact, it’s quite possible this could slip you further behind.
Do you really really need all your staff?
Do you really need to provide all those services or marketing commitments?
Are there leases and costs you can eliminate or at least reduce?
Can you sell the Company Vehicles if you have them?
- Price it accordingly. The Rent Roll should maintain it’s value regardless of the Profit & Loss and it is where 95% or more of your value is likely to come from. The Sales Business value however will likely be minimal.
- Structure the sale to suit. For a quick sale you might choose to sell the rent roll and simply vacate the premises. Of course this may be more difficult should you still have a lease in place.
If you have a lease in place and are selling the Rent Roll separately for a quick sale, consider these options.
• Talk to the shop next to you, they may consider expanding into your area.
• Speak to the Landlord about exiting your lease early
• Pay out the remainder of the lease from the Rent Roll proceeds
• Find a new potential tenant for your office
• A staff member may not be able to afford the Rent roll portfolio however they may be interested in the Business with minimal cost to purchase. Therefore sell the Rent Roll and Business is separate transactions.
In short, if you are selling the Agency you will need to provide a Profit & Loss to potential buyers.
If you are only selling a Rent Roll, no Profit and Loss is required.
For more advice on Selling your Agency contact Kevin or Grant at Real Estate Agency Sales today.
Kevin: 0447 555 683 or email@example.com
Grant: 0430 198 889 or firstname.lastname@example.org