There will come a time that you’ll have to sell your supermarket business. Perhaps, it’s one of the toughest decision you’ll have to make, but with the right process and guidance from expert supermarket brokers, selling your store is not only a simple process, but also a highly rewarding experience.
Let’s say you have this awesome supermarket or convenience store that yields high weekly turnover and a strong gross profit that every supermarket owner dreams of. You are an expert at running your store, but selling it for a good price is another thing. Meanwhile, another store owner is struggling to keep his business profitable. This owner is planning to shift into another business that he’s keen on exploring. He wants to sell his store for a good price, but he doesn’t know where to start. It’s good to know that both successful and unprofitable store owners will have the help they need when they decide to sell their businesses.
Now, let’s take a look at ASB’s Sales Process and how it will it help business sellers get the most out of the deal.
Step 1: Meet the Experts
ASB will visit your supermarket or convenience store and personally meet you to gather information about your business. It will also give your business broker the chance to see and evaluate the store, and provide you with an overview of our sales process.
Step 2: Preparing for Success
ASB will walk you through each step and help you prepare documents such as our F forms and supply of financials. These will enable us to present your store professionally to potential and qualified buyers.
Step 3: Your Market Value
Based on all gathered and submitted information, the brokers will give you a Comparative Market Analysis (CMA). This document is an examination of the prices at which similar properties in the same area have recently sold. Our business brokers conduct the CMA to help clients determine a competitive listing price for selling their supermarket or convenience store.
Step 4: Signing Up
You will complete and sign the Property Occupations Form 6 – Appointment of a Property Agent. We cannot list a business for sale unless Form 6 has been signed by the client, signed by the ASB representative and a fully signed copy sent back to the client. In instances when the business also includes a residential property, EF005A PO Form 6 and Residential Sales Schedule must be completed.
Step 5: Marketing Your Supermarket
Marketing your business for sale is our expertise and we want you to achieve the highest value for the store that you’ve worked hard to build and grow. ASB implements multi-channel marketing activities in promoting your business to reach the most number of buyers and land a profitable sale in the shortest possible time.
We conduct email blasts, telesales campaigns, print and online advertising, as well as digital marketing initiatives like SEO on our website and Social Media. Furthermore, ASB meets with key people regularly, attending trade shows and conferences in order to maintain our place as a leader within the industry.
So what happens when there’s an interested buyer?
ASB has more than 8,000 prospective buyers and sellers in our system. It is the biggest and most up-to-date database of supermarket buyers in Australia. We match our buyer’s criteria to your store by generating approximately 80 new clients per month, and we spend 25% of our time qualifying buyers to ensure that they have the ability and genuine intentions to purchase a store. Once we start getting interested buyers, we then proceed to the remaining steps to complete the sale:
Step 6: Confidentiality Agreement
Once a buyer has been qualified, a Confidentiality Agreement (CA) is created by the Sales Team and sent out to potential buyers. CA’s must be read, signed and returned by the buyer prior to store information being released. The CA is unique to your business and any prospective buyer must sign it before they can access sales data. This protects the privacy of the seller and secures that all information about the sale and transactions moving forward will remain confidential.
Step 7: Business Inspection
Once the CA has been processed, potential buyers will contact ASB to arrange for a walk through as a customer or a formal store inspection. ASB will communicate with the seller to arrange the date and time of the inspection. Inspections are an opportunity for the seller to discuss any other relevant information about their business to help ease the buyer into acquiring the supermarket or convenience store.
Step 8: The Buyer’s Offer
After inspection, potential buyers will discuss their offers, terms and conditions with ASB.
Some common conditions are:
- Due diligence
- Lease terms
- Finance Approval
The broker will prepare and present the written offer together with any contract special requirements such as extra lease options, which is a common request. Continuous communication between the parties will be our focus to ensure the best deal is finalised.
Step 9: Accepting the Offer
When the seller accepts the offer, ASB will complete a draft contract or contact the buyer and their solicitor to create a contract. ASB will manage and oversee correspondence between the buyer, seller and their solicitors. ASB will also liaise with solicitors, accountants, landlords, and the sellers to help ensure successful settlement.
Step 10: Win-Win Settlement
In this last and final phase, ASB will help guide the Seller through their business exit obligations such as settling their monthly bills and direct debits, notifying vendors about the transfer, and cancelling insurance policies. After all of the above, the settlement occurs and we hope we’ve helped make both parties very happy.
The perfect outcome: Securing an outstanding price for the supermarket business seller, and a promising and exciting new business venture for the new business owner (buyer).
We’re proud that we have had many happy buyers who return to ASB looking to buy their second, third or fourth store from us.