When someone approached Transworld Business Advisors looking for the right kind of business, Amir Hussain had something in mind. He also knew how to build confidence for a first time business buyer.
Last month, Amir Hussain, from Transworld of London, shared about a deal he’d helped to close, over the summer. Shortly after, Amir was jubilant once again, having helped to sell another London-based business, an Italian restaurant, which had presented challenges toward the end of the negotiations. “The restaurant was actually not too far from the grocery store we helped to sell. So, the selling points for both businesses were similar, in terms of them being close to Wembley Stadium,” he explains. “With the restaurant, both the seller and the buyer were motivated by the deal. The challenges we faced came from the seller’s landlord.”
Because the restaurant was located within a rental property, the landlord was involved in the sale process. “He was paid rent on a quarterly basis. So although the deal could have been completed in July, the landlord dragged it out, knowing he was due the next quarter’s rent at the beginning of August. He trusted the seller to pay on time – based on previous experience – so delayed signing any agreement with the buyer, until he had received the next quarter’s rent.”
This kind of situation is not uncommon, but it takes a skilled business broker to hold the deal together during tense challenges like this. “Because the rent would cover the first three months of the buyer’s new business, we successfully negotiated between the buyer and the seller for the rent to be reimbursed to the seller. In this way, we ensured no party felt they had lost out.
The restaurant was listed at £65k. In spite of the challenges and delays, the restaurant sold for £65k.
Amir explains how the buyer was specifically looking for the right kind of business to buy in the UK. One which would both fulfil his goal as well as the entrepreneur visa requirements. “From my point of view, it was really important to help the buyer find exactly the right business he was looking for. I had showed him other options, but felt the restaurant was most suited to him, as it met all his needs.”
But for Amir, this also presented him with an opportunity to go an extra mile for the sale of the business. “Although the buyer had a history of working in hospitality, this was his first venture into business ownership. So as part of the deal, I was able to arrange with my seller for him to give two weeks training, post-purchase. This helped the buyer to understand his new business from someone who already knew how it worked, and gave him confidence about the sale.
“Initially the buyer had big ideas about what he thought he wanted to change, but after spending time with the seller, seeing first-hand how well the business was working, he has decided he
loves what he has, and doesn’t plan to make many big changes, which meant a lot to the seller as well, as he’d invested a lot of himself into the business before selling it.”