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Selling a business

Posted by airpo - Created: 3 years ago
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10 replies (Showing replies: 1 to 10)

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Posted by Laura29 - 3 years ago

Yes definitely run and owned by a lady. I have had a lot of correspondence with her lately. She took over the business on 31 July 2015.

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Posted by guillygirl29 - 3 years ago

Are you sure FPS Property services is run by a lady ?? Don't think it has changed hands recently !

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Posted by Laura29 - 3 years ago

Try fpsproperty.eu

The are an advertising agency not an agent. It's now owned by a lady called Linda Booth, very nice, very helpful. With them you can advertise on Rightmove Overseas, Zoopla, etc at very reduced rates. All with no Agents involved so saving buyers a fortune

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Posted by tezzy - 3 years ago

There are companies that specialise in valueing your house and your business seperate(Especially for loan purposes on businesses)

When we were selling ours a person needed to get a loan they wanted a loan on the business but to do this the bank said they would need  to have an proper assesor come out to prove to the bank that its value is correct.

We made an appointment for a person to come and value both the house and the business to help these people get there loan,we thought we would get a rough estimate of how much this would be first and thank god we did because  to our horror they were going to charge from 600 euros upto 1500 euros depending on the business.We told the person this and said we we not going to pay this and if they wanted the loan they would have to pay for the assesor,but they declind ,which meant they were unable to buy our property.In the end we dropped our price much lower than the notaires valuation and sold it just as a house  with outbuildings etc and told them that its up to them if they want to run a business using the outbuildings  and that way it would not comeback on us if they didnt have the relevant experience to run a business from the property.

 

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Posted by Monkeynut-937976 - 3 years ago

Actually it is true the business can be less than selling the house .

the business if it's all is a proportion of the house and taken into account on valuation .

you add the assets up and takeaway the liabilities for the valuation .

the features of the home will not be taken into account as they are not part of the business .

also we sold our Chambre Dhotes a few years back and if we sold the house with "an opportunity" made it worth 75k more than selling it as a business amd funnily enough it was a family that bought it and were not interested in a business but it functioned well for seperate living areas for the family .

now if you are a hotel then different matter as 200 rooms against 3 or 4 really Is pointless purchase or we would all be turning our 3,4 bedroomed houses into chambre D'hotes to get more money out of them !!...saying that a lot of folk have done !

like putting a dog run in the back garden and saying "kennels" or growing veg and selling as house with "allotment for wholesale"... It will never end !

you are limiting your market and actually the French agents do sell houses "with an opportunity" if you look on major sites but your dream may not be the next person and your limited market won't help .

 

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Posted by Dibbyspot - 3 years ago

It is clear that you would wish to maximise the return from any sale. This can be achieved in several ways either on an asset basis - the value of the house and assets associated with the business. This is the easiest way  and I suspect this is what the agents have gone for.

The other option is to go along the business valuation route which normally implies a value based on the earnings of the business so for example in the UK for private business the price to earning ration is normally from 4-6 times. Hence if you earned from the business €50k/yr the value of the business is between €200-300k subject to negotiation.

That is very simplistic but hopefully gives you a flavour of some of the ways to value your business. Buisness sale is also likely to take longer due to fewer buyers. The other issue is, and I dont know the answer here, potential issues in the transfer of any licensing in France to a new owner.

Trust that helps.

 

 

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Posted by airpo - 3 years ago

Thanks for that, interesting, although I'm not sure I agree that a B & B is worth less than the same building as a house, I'm not going to force any buyer into continue running a B & B :-)

The problem we've found with French agents is that they will not mention that the property is currently being operated as a B & B. I suspect that is because a quick Google search for B & B in the locality (which they give) would come up with our details, which could cut them out of the loop.

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Posted by Monkeynut-937976 - 3 years ago

There are many pro's and con's in France to selling a houses that has a business within it .

firstly anyone wanting a loan then for commercial status it is 10 years max term and the hoops are tough , for residential mortgage /loans can be upto 25 years and makes the monthly payments for buyers easier and also banks do not mind that it is being run or will be run as a business and to make it more attractive I do believe if you go down the selling as a residential it will not only be worth more money in bricks and mortar than it would as a "ongoing business"

you only have to see how many bars my restaurants , closed hotels there are in towns etc and banks are getting tighter and tighter on commercial purchases of the leisure industry and catering industry .

your market will be biggar , wider and more attractive with options of a house for sale to do a B&B .

if you are really insistent then try wwww.businessesforsale.com who cover the world and you can choose categories so it's easier to search but remember on valution I can guarentee the whole package will be worth a lot less with the house and a business for sale as it may not be big enough than it will as a house and an "option" to run a business .

Someone may love your house but not want a business or you may be lucky and someone will come along with a wallet full of cash so all problems solved.

goodwill is worth about €1 nowadays !

good luck

 

 

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Posted by airpo - 3 years ago

GoergeV, no, I haven't contacted any agents who specialise in business sales as I don't know who they are, hence my question.

I didn't critise the first bit of advise but do resent being called a criminal.

FWIW we can provide healthy accounts going back 7 years and as the vast majority of our payments are by cheque, credit card or directly from companies there is no we could hide it even if we wanted to.

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Posted by georgeV-988991 - 3 years ago

I don't think you really want help if you criticise the first bit of advice you are given.  You need to go to an agent who specialises in selling businesses, not houses, but then I guess you have done that already but just not mentioned it.