With the market slowing down, finding the right buyer for your pub at the right price could prove more difficult than before. Here experts give their top tips on how to prepare…
1. Proof of trade/accounts
Being able to give evidence of how your pub is trading is vital.
"Although potential purchasers will be initially drawn to your property by a number of differing factors, the most important consideration is often the current trading position of your operation," says Simon Hall, a director at Fleurets' Leeds office.
"You should have up-to-date trading information, preferably with two years audited accounts, or a minimum of two years of VAT returns, ready to be viewed by potential buyers as part of your selling package."
Paul Davey, managing director of Davey & Co, says lack of up-to-date information is a "killer".
"The last full year's accounts, copy VAT returns for the period since your last year-end and management reports showing your trade split and GPs are all essential," he adds.
"If you cannot provide a credible assessment of how your business is performing, how can a buyer determine whether it is worth viewing, let alone making an offer?"
2. Presentation/housekeeping
Making sure your pub is in tip-top condition is essential if you're looking to get the best price.
Bill Colquhoun, a director at Christie + Co, says: "You should ensure that you carry out certain 'housekeeping', ideally before you even contact an agent.
"This covers the whole spectrum from ensuring the business is shown at its best right through to ensuring all relevant paperwork will be available for both the agent and any prospective buyer."
Hall adds that even minor "presentational issues" can affect the desirability of a pub.
"Make sure that your property is looking its best when it comes to sell and set aside time and resources to finish off all of those little jobs that could unnecessarily put off potential buyers," he says.
3. Is the asking price fair?
Being unrealistic with your asking price can backfire. Hall says that an unrealistic price "will simply mean your property remains on the market and unsold".
He adds: "Ascertain a fair price for your property by analysing similar recent sales that have taken place in your local area and by talking to a reputable agent. Remember, many agents will seek to entice you onto their books with elevated selling prices, only for the property to remain unsold."
Meanwhile, Davey says that you must be able to justify your asking price to stand any chance of generating "good interest".
4. Keep staff informed
Handling staff when you are selling your pub can be a tricky situation to negotiate.
Hall says: "Your staff can be a real asset when it comes to selling your property, so if at all possible don't leave them in the dark once you have decided to sell. Keep them informed, reassure them about their futures and above all be honest with them. It is better for them to hear the truth from you than rumour and gossip from somebody else." 5. Choose the right agent
Doing your research is the key for finding the right agent for you.
Colquhoun says: "Do your research rather than make a hasty decision. Study the trade press, local press and agents' websites for trade-related articles which may highlight which agent is actively selling your type of business in your region."
Davey says: "Cheap fees rarely correlate to best agents. A good agent is incentivised by a good fee."
Hall says: "Picking the right agent can make all the difference."