Terms of Business and Fee Structure

We believe that we can sell your business within the contract period, and for a higher price than all others. We are so confident of this that we operate a no sale, no fee service. You only incur a cost for our service (“a completion fee”) if your business is sold (a) within the contract period to any party or (b) beyond the contract period to any party introduced by our sales effort. Individual written contracts can be negotiated based on individual circumstances, but in the absense of a written contract the following terms apply. If we are the Exclusive sales agent during the contract period, we charge 10% of the net sale proceeds on the completion of a sale, or any other similar transfer of ownership. If you appoint other sales agents or sell it yourself, our costs are up to 12.5% of the net sale proceeds on completion of a sale to any party introduced by our sales effort. Ir we are selling a new franchise then the fee charged is 15% of the Franchise fee. The minimum fee payable with be £5000/€7500 in all cases where it has sold to a person introduced to the opportunity through us.

We operate a complete business transfer service. This service includes:
1. Pre-sale audit/pre-sale grooming
2. Pre-sale valuation
3. Preparation of the sales and marketing plan, and all relevant marketing activity to include inclusion (until sold) in our newsletter/e-zine, all general mailings, relevant internet site(s) and all ‘for sale’ signage, all relevant press advertising, targeted mailings and telemarketing.
4. Preparation of confidentiality agreements, the summary and detailed memorandum of sale, the draft sales contract, and any and all supporting documentation to facilitate the sale.
5. Handling all information enquiries from prospective purchasers. Conversion of enquirers into interested parties.
6. Despatch of all sale documentation to interested parties. Promoting the opportunity with interested parties.
7. Communicating and discussing offers with you.
8. Drafting Heads of Terms agreements. Liaison between your advisers and the purchaser’s advisors.
9. Organising and facilitating all activities involved in completion of the sale.

This service does NOT include any legal, financial or tax services, nor do we give legal, financial or tax advice. We strongly recommend you receive such advice from a properly qualified professional advisor in these areas.

Indiciative Prices of Other Services (outside a sale agreement);

Marketing Activity: These are variable depending on the type, size and location of the business.
1. Erecting a for sale sign. Budget between £100 to £300 for a typical business.
2. Advertisement(s) in local/national/international daily/weekly and trade press and professional/trade journals. Budget between £500 to £2000 for a typical business.
3. Preparing a hit list of potential purchasers from bought-in mailing lists, supplemented by library, professional or trade association research. Writing to targets. Budget between £500-£1250 for a typical business.
4. On Line web site promotion in local, national and international web sites. Budget between £300-£650.

Pre Sales Audit/Grooming: This involves the preparation of an internal audit report on the saleability of your business. It gives a "warts 'n' all" picture of the business from a buyers perspective. It is in effect a dry run of "due-diligence" on your business, bring up issues that would dissuade a buyer and be used to justify a reduced offered price. It will also provide recommendations on what should be done now to make the business more marketable. It provides a realistic market valuation of the business, as well as a projected valuation, if recommendations are enacted. The fee for the Audit is based on the amount of work required to complete the report. If financial, sales, marketing and other company information is readily available then the cost and time to complete the audit is drastically reduced. It is only after a Pre Sales Audit has been completed, that an informed decision to sell (or not) should be made. If not part of a exclusive selling agreement, the actual cost will be based on the actual time required to perform the audit. Budget between £750 to £7500.

Pre-Sale Valuation: For ad hoc valuation reports prepared by the broker and/or third-party experts. There is no cost for an oral and non-binding market estimate, where the intention is to use BizSales to sell the business. A detailed actual market estimate based for the purpose of a 3rd party sale, management buy out, internal audit, or probate etc is based on the actual time required to perform the audit. If not part of a sole & exclusive selling agreement budget £750 to £2500.

Documentation: This covers the preparation of confidentiality agreements, the memorandum of sale, the draft sales contract, and any and all supporting documentation to facilitate the sale, as well as the preparation of draft legal or financial documents that would reasonably be expected to be in place. If not part of a sole & exclusive selling agreement, this fee can range from £250 to £2500 depending on the documents required.

The Small Print

1. Subject to VAT at relevant rate.
2. Your solicitor is to pay ourselves directly from sale proceeds on the day of the sale.
3. An initial business visit is free. Subsequent unwarranted, visits may incur a cost (which will be credited against the completion fee if the business is listed with us). Such visits can be inside or outside business hours. This fee is payable in advance.
4. We normally operate only on an exclusive sole agency basis, i.e. you cannot list the sale of the business with another broker/agent, during the time of our agreement. You must inform us if you appoint another agent or complete the sale of the business yourself.
5 . For sale valuation purposes, any consultancies / retainers / benefits in kind etc are to be taken into account at actual value, and any property leases are capitalised at seven years for valuation purposes (actual if for a shorter period). Assets are based at fair market rate. Net sale proceeds include: Stock and/or work-in-progress and Debtors : both valued as at date of completion.