Pretoria Business
Brokers
Advertising solutions for all those
interested in Selling or Purchasing quality businesses
Buying
a Business
Our
selling process explained
-
Businesses advertised on our website
have either a name
with a telephone number next to the advert
or you will be expected to
click on the "Click Here" option.
-
If there is a name and telephone number,
it would normally be the name of the owner of the business. You may call
the owner directly to discuss the selling of his business with him.
-
With
the "Click here" option you will be requested to complete our Buyers Declaration
document. If our agreement with the seller is
in place, we will forward the contact details of the Seller to you without
the need to have a further meeting with us.
-
If we
have a Mandate to market the business, we will contact you.
Firstly
you need to like the business
Our
views are that you should firstly carefully look at a business and decide whether you
actually like it
or not -you must like it! You should NOT buy a business simply because of
good returns for your investment (unless you will not be actively involved
yourself).
If you want to buy it, you should
then make a written offer
to purchase it.
Making
an offer
Making
an offer is not a terrible thing and if done correctly (with our
help), will protect you! If the business is healthy you should buy it and not be afraid.
There are no perfect businesses!
Offers made through us will always be subject to
1 ) The business producing the promised Net Incomes and turnovers (a due
diligence). If the business (seller) fails to prove the promised results within certain
limits you will have the opportunity to either withdraw your offer, pursue
the purchase or negotiate a proportionally reduced price.
2) A New Lease agreement. This is extremely important! No lease, no deal
3) Approval by the Franchisor (if the business is a franchise)
4) Finance arrangements
Due
Diligence Once
your offer is accepted by the Seller, you will be given the opportunity to
verify the businesses financial information to prove to yourself that
the business is sound and healthy. |
"The difference between
what you already have, and dream to have, is what we would like to help you
get!!"
"Money spent on
gaining knowledge and understanding, is not money spent, but money
invested".
Quotes by Louis Kearney
Email
louis-k@mweb.co.za
Pretoria
Business Brokers endeavor to sell good investments. Buying a quality business is
probably the best investment anyone can presently make and it is the best way to
secure a good future for you and your family. When investing in a business, we
recommend that you should try to earn at least 40% interest on your money per
annum. This means you should recover your full investment from NET profits
(after all business expenses have been paid) within 30 months. You will
notice that we show months needed to recover your investment for every
individual business.
What you
need to consider when looking at this calculation, is whether the price include
stock. If it does, the stock should be deducted to do a proper valuation of the
business . The
more secure and well known a business (many well known franchises), the higher
the number of months will be. Location is also a very important determining
factor. The old rule about location, location, location stands as good for
businesses as it does for houses and other properties. The little café around
the corner may sell for 12 months profit while a very nice Spar shop which is
perfectly located could sell for up to 40 months. Price is based on supply and
demand-and NOT on what the seller think it is worth. Ultimately the fair value for a business is based on the price a buyer
is prepared to pay for it.
We spend a
lot of our time specializing in Food Franchises but occasionally we do get good
businesses in that is not food based. Please study the list pf businesses
listed on our website. If the business
name is underlined, you may click on it to view more information and in many
cases, also photographs of the business. If you would like more information,
please feel free to contact us.
| IMPORTANT
NOTICE: You are viewing highly confidential information which should
please be be treated with discretion. This information may not,
and should not be disclosed to others. It is illegal to approach the staff
or management of these business to discuss the operation of, or the sale of the business with
them. In most cases the staff are not aware of the sale of the
business. If they become aware of the possible sale of the business they
could resign while not understanding the full implications of their
decisions. This could effect the future success of a business adversely
and could be the cause of legal actions against you.
We do not believe in hiding our businesses from you, our
buyers. Often the photos attached make it quite clear where the businesses are
located. We work on Mandates with businesses and the business
owners expect you to work through us
as the brokers. If you try to do business around us,
you will ruin your own name in the marketplace and with business owners who trust us
with their information. Such illegal behavior will cause you to loose the
business as you will not be allowed to join the specific, and other franchise
groups. Help us to trust you, as you can trust us to give you completely
truthful and honest advice and information. Consultations:
Time is money and our time, just like yours is extremely valuable. We
are available for consultations and advice. We charge a consultation fee
of R380 per hour or part thereof. "Money spent on
gaining knowledge and understanding, is not money spent, but money
invested". Quote by Louis Kearney |
A word on Financing
We can assist you to get finance from different Banks. The
bigger the business and the better it is known, the easier it will be to arrange
finance for you. If it is a good business, with excellent books and profits, we
can help you get the needed finance.
Many buyers often have unrealistic
expectations when it comes to financing. They believe that they only need a
small deposit and that the banks will finance them for most of the money to buy
a business. The truth is that you will probably not get finance approval from a
Bank unless you have at least 50% of the funds available in cash or in the form solid security. You may then get approval if you have a good track
record in the specific type of business you are keen to buy. If you worked in a
certain type of business for a few years, it should be quite easy to get
finance. If you have no
experience in a specific industry, the bank will require a much higher
deposit-or security from you.
We do recommend that you
try to establish the banks requirements before trying to buy a business.
While raising a second bond against
your home or a specific property may be in some cases be the risky route to
take, it is certainly the cheapest way the finance your new business. If you plan to raise a second bond
against your house or a property, we recommend that you arrange this in advance.
Often business opportunities will come and go very quickly and you should be in
a position to make quick decisions and put money on the table if you want to
secure those opportunities when they do come along.
Important Notice
We receive many many calls from buyers wishing to buy businesses while
they do not have nearly enough money to afford them. When making an offer to
buy a business, the Seller would always want to know whether you do actually
have the money to buy his/her business. Anyone can claim to own a fortune. Unfortunately
most people believe that the Banks will give them all the money they need-The
answer is simple!
The Bank WILL NOT
GIVE YOU A LOAN unless you already have at least 40% of the purchase price in
cash.
UNLESS the 2nd hand value of the Business's assets are worth more
than, or if your personal balance sheet reflects a positive value well above
the 60% value of the loan you wish to apply for, you may be approved.
If the Business you wish to
purchase is a Franchise, the Franchisor will from past experience know that
you CANNOT survive in the business unless you have a large portion of the
purchase price in cash. When people make big loans, their repayments are
simply to high and they will NOT succeed. For this reason the Franchisor
will NOT approve the Franchisee unless your own contributions are large enough.
If you have properties or
businesses that have large Security value, we would strongly suggest that you
apply for a second bond BEFORE making an offer to purchase a business. This
way the money will be seen as an OWN CONTRIBUTION and not as a loan.
Ratings:
We rate all businesses according to value for money, neatness, location,
feet, net income, expansion possibilities, and a few other criteria. Five stars (
) are
not easily
given and is the best scoring possible. Such businesses are often be sold
before it reaches our website. We also rate businesses
with the number of months needed at the present NET income, to recover
the full investment.
Return in
Months: This is the number of months it should take you to get all the money
you paid for the business, back into your own pocket based on the Net return
shown above for each business.
Annual
Interest: Based on the Net profit, this is the Annual interest you can
expect to earn on your investment, in the form of profit or income when buying a
specific business.
|
Keys
to Colour Indicators used above
Grey
marked businesses are in the process of being sold
Businesses marked in
green
are sold and are removed soon after sales are completed
|
Louis Kearney 083 281 2709
Office Number 012-361 0576
|
Email of
recommendation received with thanks from a satisfied customer:
"
I have posted an advertisement for the selling of my business on the Pretoria
Business Brokers website and have experienced immediate response. The
calls were from good quality potential buyers and the third caller became the
new owner of my business.
I
also consulted with Mr. Kearney on business sales matters and his advice was
professional and worth every cent invested in it. I would gladly
recommend the services of Pretoria Business Brokers."
Carl Ahlers, Experilab, Pretoria, South Africa
|
Important questions we think you should get answers for,
and carefully consider when buying a business!
Where do you live? Do not buy a
business that is to far away.
What price class are you looking at?
Don't go too big too quick.
How much money do you have available
(unencumbered cash)? You must have cash!
Do you need to make a loan from a Bank to purchase
a business?
Do you qualify for a second bond against your
house or another property (normally cheapest finance available)?
What are your income expectations -(ROI) Return on
Investment expectations?
Your planned involvement in a new business
(Investor/passive/actively involved)?
Your experiences (previous businesses owned or managed)?
Your risk profile-are you looking for a High Risk/High return or a Low
Risk/Low Return type of Business?
|
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