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