Tram Coffee Shop in Richmond sold to new business called Neeman
Background Information
Manuel and is wife Anna Conceicao contacted Zach Dogar of ETS Corporate Business Brokers after they had a sudden medical emergency. Anna required urgent treatment which was to start in 5 weeks and they could no longer operate the business after only 4 weeks of opening it.
They had only opened the business in October 2018 with an investment of over £35,000.
ETS Corporate placed the business on the market on the 12th November 2018 and within 24 hours had secured a non-refundable deposit of £5,000 from the Buyers. The sale was concluded on the 22nd December 2018, at record speed thanks to ETS Corporate's associations with a good team of lawyers and the determination and initiative of the Owners.
It was sold for the full asking price of £34,995, ensuring the medical treatment was administered on time and the Clients were able to re-coup their investment.
This case demonstrated that ETS Corporate are very quick, efficient and have excellent industry knowledge. They know where to pitch the sale price to get the result for the client whilst obtaining the best price. Their lock out fee (a non-refundable deposit paid by the Buyer when a sale is agreed) ensured that the buyer was serious and genuine and they know what information to place on the ad to get the most effective result. They also work with a diligent team to get the job done for the Client.
About the Business
This very new coffee house business was being sold due to illness. It has been operating since October 2018 with a husband and wife team.
The goal of the business was to be the artisan coffee house of choice for the local community in Richmond, the address being 226 Upper Richmond Road West, East Sheen, Richmond SW14 8AH. It attracted shoppers, downtown business workers, tourists who visit the city, and students, by providing a higher quality experience than any competitor.
The coffee bar was an independent family run coffee house that offered residents, visitors and the business community a different, more personal style of artisan coffee house by providing a uniquely flavorful coffee and cakes as well as a comfortable environment to socialise, relax or work. It had huge potential in the short time it has been open.
It offered some individual and unique foods as all cakes, salads, toasties, and baguettes are hand made in house on demand. They also offered a warm, trendy and light atmosphere as well as a personalised welcome and service to all their customers.
The Owners had planned to obtain a drinks licence and open later from Thursday to Saturday in order to serve cold meats and cheese platers as well as other Mediterranean foods accompanied by wine/beer. In addition, they wanted to apply for an A3 licence so that they could extend their menu by including hot food options. This change of use was already contemplated in the current lease.
The Challenge
The Owner contacted many agents and decided to use ETS Corporate for many reasons. They were able to place the business on the market within 24 hours and offered a personal and professional service. Further, ETS Corporate did not charge upfront fees and were therefore motivated to sell and results focused, as they pay for each client’s marketing upfront themselves, whereas a majority of agents charge upfront fees. The valuation was realistic and Anna and Miguel were confident in ETS Corporate's abilities.
If the Owners had not sold the business, they were going to lose all their investment and still be liable for rent under the lease. It was imperative that the business was sold within 4-5 weeks before Anna’s treatment started.
The owner was initially referred from Daltons Business, with whom ETS Corporate have a long standing relationship.
Our Solution
ETS Corporate first of all obtained all the information from the Owners and were on the market within 24 hours of instruction. This was after a valuation was done within hours of being contacted and all paperwork was signed electronically. ETS Corporate have a very automated system, which is largely internet based and therefore are able to move very quickly and without the need to send sales people to clients. All valuations and the whole process is handled by Zach Dogar, who has over 22 years experience in the industry.
All advertising was proofed by the Owners to ensure they were comfortable with the contents being published. It was advertised on www.businessesforsale.com,
It was also made available to a database of over 650,000 Buyers.
Roya Fanaie contacted Zach only hours after the advert had gone live, and, although it was a Saturday, he arranged for her to go and see the business that same afternoon. Immediately after viewing the business she offered full asking price and paid the non-refundable deposit of £5,000. The matter then proceeded to the solicitors and the Clients used ETS Corporate’s recommended solicitor Yew See Bailey, and the sale was completed in record time, by the 22nd December 2018.
Results
ETS Corporate were able to find a suitable Buyer for the Owners within 24 hours of going to market including securing a £5,000 lock -out fee and complete the sale within just over 5 weeks of instruction.
For the Clients, they were able to sell and get their investment back and get on with the treatment which was starting after only one month.
The Buyer’s Roya and Amir Fanaie were very keen on the site which is extremely busy and on a prominent corner plot. They wanted to offer authentic and traditional Iranian dishes that are not available locally.
They re-named the business Neeman after their two sons and as well as coffee and tea, they offer healthy drinks and smoothies. They also provide pomegranate Juice, which is very popular in Iran.
They are also planning to introduce other dishes such as:
Haleem for which Roya has her own recipe;
Various home-made Iranian soups again from old family recipe; and
Shirin Pollo which is a sweet Iranian dish
All the dishes will be slightly adapted for the British palate.
Amir found the service ETS Corporate offered to be
“very good and particularly good was the punctuality, politeness and honesty. We were very happy with the time scale. We were first time Buyers and you helped a lot.”
Roya said:
“to be honest, the service was very reliable and friendly. When we paid the non-refundable deposit of £5,000, you emailed us back in 10 minutes to let us know you have it I can trust you and your company”
The non-refundable deposit or lock out fee is very important as it ties the Buyer to committing to Buy the business at the agreed price and this stops Buyers taking advantage of the situation by threatening to pull out in an attempt to reduce the price.
The author of this case study Zach Dogar has over 20 years’ experience as a business broker and has helped hundreds of business owners sell their business.
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