A transfer consists of the lease or sale of the premises in which an economic activity is exercised, which in practice means “Rent” or “sale” of that business elsewhere. Regardless of the option that is used, it is clear that the transfer is a solution to resort to in case the debts accumulate dangerously.
In order to get the best possible price
Beyond its legal aspects, the success or failure of a transfer is based on a good negotiation , in order to get the best possible price. If you are considering this possibility, then you have a series of steps to follow to obtain a good result.
A good transfer begins with a good assessment of our business . This includes the value of the premises, its situation, the clientele it has, the suppliers that supply the business (and the agreements with them), the machinery and elements included in the premises, etc. In addition to the business’s own elements, its market value must also be considered. This happens by knowing the value for which similar businesses have been transferred. If we have a butcher shop, how much has been paid for the transfer of the butcher shop located at the other end of the neighborhood?
Set a minimum and a maximum price
Once we have an approximate figure, we have to set a minimum and a maximum price . The first is the minimum amount with which we will cover our debts or retire decently. It is important to be clear that, below this price, we get up from the table and leave the negotiation. On the other hand, the maximum price would be the maximum amount with which we can start the negotiation. It has to be a slightly “swollen” amount, although within realistic margins. It’s okay to ask for 3 million euros for a hairdresser. Just don’t expect many buyers to be willing to negotiate with those letters of entry. With these two prices arranged, we can have a bargaining margin.
Increase the possibility of transferring the business, but you will also get a higher amount.
Next, we have to advertise our offer . It is not enough to hang a “ Transfer ” sign on the door and cross our arms. We have to make it visible and known to everyone and do different things. You have to publish ads in specialized portals and in the local press. Talk to suppliers, customers, family and friends. All that is necessary to increase the spread of the transfer. Remember: the more offers you negotiate, the higher your success rate will be. Not only will you increase the possibility of transferring the business, but you will also get a higher amount.
Finally, it never hurts to practice the negotiation process . We can ask a friend or family member to act as a potential interested party and make it difficult for us. Thus, we can prepare strategies for future complicated situations. Similarly, practicing is the easiest way not to fall into something very common when you are desperate in a negotiation: sell below the minimum price.
Taking these tips into account, you will have half the work done. Now you just need to get an interested party.