How to Successfully Sell Your B&B
Thinking of Selling your B&B? You’re in the Right Place!
An important part of our local community, and one of the largest sectors for employment in this area, is the hospitality industry. Every year the Lake District and surrounding areas attract hundreds of thousands of visitors and the popularity of our beautiful region doesn’t seem to wane. Hoteliers and B&B owners make up a significant proportion of our local economy and it’s not difficult to see the attraction of running a B&B in this area.
Sales and purchases of B&B’s are as popular as ever and if you are thinking of selling your B&B there are a number of matters which should be considered prior to placing your business for sale. As your local solicitors we are here to help you along the way, but there is some preparation which you can do to help the process and keep the sale proceeding within the proposed timeframe.
1. The Business
You will need to have to hand the accounts for the past few years trading for any prospective buyer as well information regarding future bookings. Be prepared to answer questions honestly surrounding the reasons for the sale of the business. Try and collate as much information as possible regarding the business and any consents that may be needed to sell to a new owner including any food hygiene ratings and your health and safety file.
2. The Property
For many B&B owners the business premises are also their home. Remember, any prospective buyers will be looking closely at the exterior and interior of the property. Don’t give them a reason to not proceed with the purchase of your business. Present your property in the best light possible both in terms of the owner accommodation and guest accommodation. Title deeds, planning permission and other consents should be placed together to ensure that once a sale has been agreed there is no delay in providing the information to the buyer.
Have an inventory ready to provide to any interested party as to what you are willing to include in the sale of the business. Most purchasers would expect the majority of the fixtures and fittings to remain, so they are able to continue running the business from day one.
By law all employees should have a contract of employment. If you have employees who assist in the day to day running of the business it is usual that the employees will pass, upon the sale of the business, to the new owner. Ensure that you have all employee details and copies of their employment terms available as these will be required.
Advice will be required from your accountant regarding the sale and any applicable tax relief. It is a good idea to inform your accountant of any proposed sale so he/she has sufficient time to provide guidance as to the most tax efficient way to sell your business. Any future sale can then be structured accordingly.
Arnold Greenwood have a team of specialist solicitors that can deal with every aspect of the sale of your business under one roof. Over the years we have been instrumental in many B&B and hotel sales and purchases within the Lake District and beyond. These range from family run B&B’s to £1 million plus hotel transactions. We will work closely with your other professional advisers to ensure your matter proceeds as smoothly as possible and provide straightforward guidance and support every step of the way.
For further information and advice, please contact our Senior Director, Stephen Pooley on 01539 720049
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01539 720049, or complete your details in the form below.