| Clubs are one of the most exiting businesses that a | | | | is legitimate and genuine. Asking the buyer to sign a |
| business owner can partake in owning. But when you | | | | non-disclosure agreement is a must. |
| decide to sell a club making the right decisions and | | | | After signing of the non-disclosure agreement, the |
| working with competent companies can make the | | | | buyer can be given the other confidential information |
| transaction smoother. Running a club can be a thrilling | | | | regarding finances and operations. |
| experience, but it takes a lot of knowledge to sell a | | | | Establishing the worth - The worth of a club must be |
| Club. Buyers expect a lot of information to ensure | | | | made known to the buyer. For this, the first step is to |
| things are in order. | | | | get everything evaluated. It helps to seek the help of |
| Timing - The timing for the sale of a club is very | | | | an experienced evaluation expert. This is a must not |
| important. The club should be doing very well with | | | | only for the seller to fix a price on the business but |
| plenty of repeat customers and the possibility of | | | | also for the buyer to understand and appreciate the |
| retaining the customers with the new owner is crucial. | | | | value of the club. |
| If there are certain times in a year, when the club is | | | | Terms of sale - Pricing is not the only factor that |
| usually full, then prepare to sell it during that period. | | | | needs to be taken into consideration when selling a |
| Another thing about timing is that, at the time the | | | | club. The current financial situation and the health of the |
| business is put up for sale, there should be no | | | | club are factors that will also influence the sale. |
| contracts that are going to expire soon, or else buyers | | | | Another important aspect is how the payment would |
| tend to reduce bids. | | | | be made, either a complete cash deal or offering seller |
| Club owners manage their business using the strategy | | | | financing, the involvement (if any) of the seller in the |
| of reducing the taxes by reporting less income, and | | | | club business after the sale is made and the |
| buyers first look at the income that is reported in the | | | | ownership transferred. Mutually agreeable terms can |
| tax returns in order to place a value on the business. | | | | be arrived at after discussions. |
| This is where advance planning becomes important. | | | | Some buyers may wish to get the seller to finance all |
| The years prior to putting a business up for sale should | | | | or part of the sale. Seller financing usually gets the |
| be carefully planned and more income shown, even if | | | | seller a better deal. |
| one has to pay taxes. | | | | Recasting financial statements - This means checking |
| Seeking advisors/consultants - It is advisable to consult | | | | the financial statements to avoid showing that less |
| advisors or experts to understand government | | | | income was portrayed to avoid taxes, engaging in any |
| regulations better. Accountants can help with the | | | | illegal transactions that may effect the bar business, or |
| financial aspect and taxes. An attorney can help with | | | | having shifted some personal expenses to the club. |
| the legalities. If the club is well-established and | | | | Adjustments in the balance sheet and income |
| depending on the size, one can either use the advice | | | | statement should be done if needed. |
| of the experts or engage them to get things done, | | | | Advertising - The most crucial step in selling a club |
| including valuation, packaging, locating buyers and | | | | business or any other business for that matter is |
| negotiating the sale. | | | | advertising. Targeting an active network of buyers is |
| Confidentiality - The worst part about selling a club is | | | | important to reach qualified prospects with capacity to |
| that, it can have a negative effect on the bar, once it is | | | | acquire the bar business for sale. Identifying and |
| made public that the club is for sale. The employees, | | | | screening to evaluate the financial strength of the |
| competitors, customers will start drifting and in turn | | | | buyer is extremely important. |
| destroy the placing of the club, lessening the value. | | | | With all these things done, one cannot go wrong in |
| We also need to talk about how confidentiality needs | | | | selling their club to the best buyer and be happy in the |
| to be maintained. Limited information should be given to | | | | knowledge that their business is still in good hands. |
| the potential buyer, until it is determined that the buyer | | | | |