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In 2022 & 2023 Company Becho acted in the sale of a lock manufacturing unit based
in Pune. The factory owner had decided to retire but wanted to pass the business,
which performs a highly skilled lock making process, not only conventional locks, but
high end digital locks too.. The business was long-term profitable and as such was a
good investment proposition for any new owner looking to get into manufacturing
Confidentiality is key! Whether the business is being listed openly on our website or
privately marketed the confidentiality of our client’s business information is key. So
despite marketing this business on our website at the general enquiry stage no
financial information was sent out to any enquirer and if after receiving a general
business overview an interested party wished to see commercially sensitive
information (such as the accounts and the business lease etc) a confidentiality
agreement was required to be signed first. These agreements can be shipped
straight away electronically and executed via PC, Tablet or phone.
A meeting was set up with the owners to discuss their business and selling goals.
We then put together a custom marketing plan and business description – which was
sent for the owners approval which formed the basis of our marketing plan. The
business was then marketed across all of Company Becho’s media channels and to
our exclusive mailing list. We handled all enquiries. We filtered and re-directed all
serious enquiries to the seller and agreed how they wished to proceed. Then under
confidentiality agreement we sent out information to all interested parties. During
regular calls our consultant gave updates and guidance. There were many interested
parties and ultimately we found the right buyer for the business with the two parties
coming to an agreement and exchanging contracts for the sale in August 2023.
Throughout the process of dealing with several interested parties before a sale was
ultimately secured we make the following observations that both buyers & sellers of
businesses need to be aware of as negotiating a property sale and negotiating the
sale of a business as a going concern present two very different challenges. Not
Each buyer will have a different view on the accounting information presented.
If unsure on how to interpret the financial information provided you should get
a qualified accountant involved.
Any business goodwill value is often intangible and generally relies on the
perspective of the buyer as to how much future business the existing business
goodwill will secure for them
Understanding commercial leases is important as most businesses operate
this way. Again if unsure you should seek professional advice
With any manufacturing business you will need a certain amount of stock to
continue trading. Agree stock values and check supply contracts with the
seller in advance.
Some buyers will have cash & some will need to raise finance. Raising
finance is not as straightforward as getting a mortgage on a residential
property and we have lenders who can help where required.
Above all can you see yourself running the business in question? Buying a
smaller business is an emotional as well as a financial investment.