Restaurant is now on the market - what next?

[Viki.W]

Hey all,

I have just had the last of the valuations for the restaurant and apart from the first one of £40,000(jeez) all four have come out between £85,000 - £94,000 so I have decided on £89,500 with a company called SBS Commercial. They seem to know what they are doing and have sold a lot in the area. They also sort out the lease so that it will be a "surrender and re-grant" instead of just having the lease assigned therefore I won't be liable for the rest of the term. Their fee is fixed at £4000+vat. My solicitors fee + landlord's solicitor's fee is approx £1200. They reckon my restaurant will sell in a matter of weeks! Mmm

As at today my debts are(rounded up):-

TSB personal loan £27269 (amount + remaining months)
TSB business loan £27938 "
TSB business overdraft £6000
TSB credit card £13643
Barclaycard £6442
Capital one credit card £4168
Halifax credit card £12079
Carslberg loan £4188 (forgot about this one)

My questions are:

1) Before offering a full and final to my creditors from the sale of the business will they let me pay the fees for the agent and solicitor?

2) Will this leave sufficient funds to be able to offer a full and final that will be acceptable?

3) Is there any chance that I can keep some of it to tide us over until we both get jobs or is that just unheard of?

4) One for Melanie:- Should I be contacting Melanie again at your office yet or should I wait until I sell?

Sorry for the huge post, mine is definately not as interesting as that cheap shoe advert! [:)]

Any advice would, as always, be appreciated.

Kind regards, v.w X

[MelanieGiles]

Hi there - answers in the same order

1 Yes
2 I am sure it will, but do beware sellers of businesses who will promise you the earth and then still be trying to sell your business in two years time. Ask for a timescale in which they expect to sell, and also how the valuation would be effected if you insisted on a sale within the first six months.
3 Yes - but this could only be calculated when you know how much the sale price is.
4 Yes - we can now proceed knowing that your business is on the market.

[Viki.W]

Thank you Melanie for your quick reply. I am starting to feel more positive now. I understand about timescale and will contact the agent tomorrow with that question. I will contact Melanie tomorrow, I have actually lost the direct phone number she gave me but if I phone the number on your web site will someone be able to give me it? Kind regards, v.w

p.s. I am just in the process of opening a business account with Natwest as you advised and also Streamline so hopefully that will go through ok, also opening a personal account with them.

[MelanieGiles]

Absolutely, and great news about the bank account too.

[jpj]

Well done VW...I told you to hang on in there!!

Im just saddened i never got a "Carlesburg loan" before my IVA started ( ...
...If all loans were as good as Carlesburg loans...blah blah
Got 3 weddings,3 stag doos to go to this year....would have come in dead handy!! )

[Viki.W]

Hey jpj, you're welcome to come and take it anytime. [:D]

[jpj]

More of a Fosters and Stella man myself!....)

[Viki.W]

Oh by the way jpj, I quoted you to the valuer "a goldmine that I haven't had time lately to fully realize the potential of" Thanks for that. [:D]

[jpj]

Glad to be of help....just remember to repeat it to the buyers too! )