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Press Release from Stephen Taylor, Managing Director - Guy Simmonds

Reaction to Januarys Interest Rate Reduction

Uk Pound SymbolThe latest reduction in the base rate to 1.5% is to be welcomed.  This new rate is now the lowest level since 1694 and merely emphasises how deep and severe the economic crisis really is.

In order to become effective, we now need the lenders to pass this reduction on in full and become enthusiastic once again in lending to viable licensed businesses.  Due to savers now receiving negligible returns on their hard earned savings, we are currently attracting a large number of purchasers seeking profitable business opportunities - complete with a home and lifestyle.  Indeed at Guy Simmonds we have just concluded an excellent sales month for December and the level of viewings actually taking place from newcomers to the trade is dramatically increasing.

However, buyers are now extremely cautious backed by prudent lenders.  It is therefore imperative that business valuations are readjusted to conform to a strict valuation criteria relating to actual net profits with proven accounts – optimistic forecasts and potential will no longer attract the inflated premiums achieved in previous boom years.  For unusual licensed businesses where valuations do not directly correlate with net profits eg closed units, under-trading outlets or potential for alternative use, then Guy Simmonds have now established a National Auction Division. 

 

Guy Simmonds Business Transfers Ltd
Coppice Farm, Ashby Road, Melbourne, Derbys DE73 8BJ.
Tel: (01332) 865112 (Main number & answerphone - 24 hours & fax - 5 lines)
www.guysimmonds.co.uk
sales@guysimmonds.co.uk
Registered No. 2727033
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