First of all a Happy New Year to all of our clients and readers. Certainly 2009 is going to be an extremely challenging trading year for publicans. Clearly in these unprecedented economic times landlords should take a pragmatic view in respect of rental values, which need to be realistic and support good operators throughout this deep recession.
The latest reduction in the base rate to 1.5% is to be welcomed. This is now at an all time low - but obviously, we need the lenders to pass this reduction on in full and become enthusiastic once again in lending to viable licensed businesses, in order to become effective. Due to savers now receiving negligible returns on their hard earned savings, we are currently attracting an increasing 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 interest from newcomers to the trade is increasing.
Over the last 35 years at Guy Simmonds our job as a sales agent is to act in the best interests of our vendor clients and offer a highly professional and innovative service. We now offer our nationwide corporate redundancy re-training package which is receiving high levels of interest. 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.
To conclude, we are optimistic at Guy Simmonds that a 'new breed' of buyers will ensure licensed businesses continue to sell in 2009 - albeit at realistic prices.
Looking to sell your Pub, sell your Hotel, sell your Restaurant, sell your Business etc.? Please contact us to arrange a free no-obligation market valuation.
Please visit www.guysimmonds.co.uk to see all of our licensed businesses for sale including hotels for sale, pubs for sale, restaurants for sale etc.
Looking to Buy a hotel? Buy a Pub? Buy a Restaurant? Please visit www.guysimmonds.co.uk to see all of our licensed businesses for sale.