The team have continued to be busy over the last month or so with enquiry on childcare business and freehold sales.
There have been some delays in getting the 2022 financials through from Accountants as they continue to be challenged with staff being away due to Covid.
If you are thinking of selling in the next 6 months, it is essential you are in liaison with your Accountant to get the information in a timely manner. It is also timely to ask your Accountant to prepare quarterly accounts for the period April to July 2022 to help demonstrate trading under normal times, post Covid influence.
Banks are requesting up to date figures to assist in their decisions on finance approval so the more accurate the financials, the better the outcome for the sale process.
One area of note that has been a challenge for some sales, has been Landlord Consent. Many people assume that this is a rubber stamping exercise, but new tenants need to be prepared.
It will be easier for a landlord to make a faster decision if the landlord is provided with relevant information at the time of the application for consent. An application should include information on the purchaser of the business or the new tenant and guarantors, including a CV or work experience details (especially business or industry experience), financial statements of assets and liabilities, and evidence of the character of the purchaser.
This information needs to be provided by the new tenant and show the landlord that the prospective new tenant has the skills and finance to pay rent and run a profitable business from the premises.
The consent process can be difficult if the information has not been well prepared, our role as Brokers is to make this as seamless as possible.
Likewise if your lease has less than 12 years remaining tenure, it is ideal to work with your landlord prior to coming to market to negotiate extensions to the terms of the lease and make the sale a seamless process for the buyer and bank funding.
If you have any questions on Childcare leases, feel free to make contact : firstname.lastname@example.org.