Thinking of buying or selling a lettings business?
We recently caught up with Adam Walker from Adam J Walker Associates who have specialised in the sale and purchase of lettings businesses for over 25 years. During our recent webinar, we were surprised to learn that they have 80-100 businesses working through this process at any one given time.
What we weren’t surprised to hear is that lettings businesses have performed remarkably well during this pandemic – a trend that we have seen time and time again during market crashes. Trading is up by 90% for lettings businesses and the price of selling is at an all-time high.
So, if you are thinking to sell your lettings business, now sounds like a good time to get the ball rolling.
View webinar
Why buy a lettings business?
If you already have a lettings business and want to expand, buying another local lettings business is a great opportunity to generate a steady and consistent income with a return on investment of 33% and minimal risk. One of the reasons it’s so profitable is because lettings can be easily incorporated into your existing premises and operations meaning there is little change to your outgoings.
What’s the biggest mistake you can make when buying a business?
According to Adam, the biggest pitfall an agent can make when buying a lettings business in not getting accurate information about its performance and accounts which can result in you paying too much for it. “It’s crucial that you do the due diligence work thoroughly or else you may buy a business that has hidden problems and this will mean that you will be responsible for these as the new owner.”
What mistakes can you make as a seller?
“One of the biggest mistakes you can make as a seller is selling your business directly to someone that has approached you out of the blue – it’s best to attract multiple bids in order to get the best price” said Adam.
How to maximise the value of your business in the future?
The best advice Adam can give here is to look at your cost control and efficiency instead of just revenue. Automating tasks can give you a substantial gain in profit and the value of your business will be decided by its future revenue potential.
Why use a buying or selling agent?
Brokers like Adam J Walker Associates help agents selling their lettings business to get them in tip-top shape for the sale. Adam commented: “Our approach is to start by making you a tailored business plan on where your company is currently and where you ought to be in order to get the best price. This will consist of a 20-30 page strategy which you must implement to make your business double in value.”
Other benefits of a seller using a broker include:
• Attract multiple bidders to get the best price possible
• Make sure the sale goes through (mostly) first time due to their knowledge
The main reasons purchasers should go through a broker include:
• Thorough due diligence
• Obtain an accurate business valuation
• Access to recommended experts such as solicitors and accountants
Exclusive kerfuffle deal
Adam has a brilliant offer in which kerfuffle members can get:
- 10% off consultative work
- 10% off the normal 3% fee for selling a business
The clock is ticking on this limited time offer – find out more.
