ABC BUSINESS

WELCOME

Steve Smith AREINZ
Managing Director

The Value of Marketing

We are constantly reminded about the power of effective marketing and the impact it can have on the businesses we sell. When you have multiple buyers competing for your business, you will get the very best outcome, and the maximum realisation of value, when you sell. One of the opportunities we have recently listed is another prime example of how this well developed strategy has meant tens of thousands of dollars extra for our vendor clients.

A new business was listed and the information memorandum, business profile, advertising schedules and marketing channels were prepared over the first few days. We staged a programmed release across all media and scheduled the campaign to run over up to five weeks. The first internet ads went live on a Friday afternoon and the first newspaper advertisement appeared the following morning.

We received a huge number of inquiries and, within two days, 14 qualified buyers had made appointments to sign confidentiality agreements. Based on the level of activity that had been generated, our broker advised the vendor to set a deadline date for offers and buyers were notified accordingly. By Thursday we had two written offers and an offer to buy the freehold property as well. Before the end of the second week we had seven offers for the business and three for the building. The owner is now in a position to review each of the offers on its own merits, and determine which one provides the most favourable price and terms.

With the help of our broker, the offers are now being considered and a decision is pending. Our vendor has the luxury of time and can afford to be very selective, knowing that the result will be better than might ever have been expected.

We strongly believe that you need to market your business professionally to attract the greatest number of people and to get the best price. Our results speak for themselves.

Please call us anytime to discuss how we can help you to get the maximum value for your business.

Regards,

Steve Smith AREINZ
MANAGING DIRECTOR

FUTURE FEET

FUTURE FEET is one of the top destination stores in Auckland specialising in children’s footwear. The current owner contributes most of its success to the unique business philosophy which relied on a consultative selling method which ensures that parents, children and grandparents receive the benefit of careful fitting and considered advisory services.

The current owner commenced trading 18 years ago and lovingly but astutely built the business to the success story it is today.

Further key success factors include:

Top location
Top Staff
Top Range of quality Brands

The steady history of eighteen years provides a new owner with data showing continuous growth throughout the challenges and opportunities posed during many economic cycles.

The vendor has expressed her desire that the new owners continue to build on the incredibly successful philosophy that she has honed over the years. This ensures that customers get excellent value for money where chosen shoes are measured and fitted ensuring the growth of healthy feet.

This company is one of those rare business opportunities which can truly establish you as a serious player in the New Zealand retail arena.

Opportunities for Growth

Developing a range of Future Feet branded shoes.
Future Feet could be franchised throughout New Zealand. Developing the website to grow online sales.
A customer loyalty club could be developed to enhance the current priority club list of customers.
The club could be used for pre-season announcements, specials etc
The business can be computerized and systems be added to streamline service in store to provide pre- and post- sale communication with customers
Opening seven days a week could add a full extra 52 trading days per annum
Expanding on education opportunities (information station)
The current vendor has used the following promotion methods:
Speaking to groups
Articles and press releases
Podiatrist referrals
Internet advertising

www.futurefeet.com

The current website offers customers information about the brands and new ranges, but the pride and joy of the website is the fitting system described in great detail to assist online customers to make an accurate decision. A new owner would take over and own the Future Feet domain name and be able to expand on the foundation laid by the current website.

Assisting with Takeover

Ideal time for takeover would be just after the change of season sales in April. Suggested takeover date would be May / June 2010.

The current owner will be available for training in store as well as training in merchandise selection.

Current staff could be approached to continue to operate the store, but the decision is at the purchaser discretion.

It is noticeable that Future Feet has increased turnover in the midst of a major worldwide recession in 2008 - 2010.

Price

BUSINESS PRICE $365,000.00 Including Stock

UNIT (Freehold) PRICE $1,500,000.00

Preference would be given to offers including the freehold unit title.

Contact Wilna Fourie
09 630 1600, 0272 095 009

Ref: 21936

Click here to learn more

WHY YOU SHOULD USE A BUSINESS BROKER

Richie Lowe AREINZ

No one truly understands the demands and stresses of running a business better than its owner. In fact for most owners the business is usually their constant prevailing thought. That brings us to the first reason why he or she should engage a business broker when it comes time to sell the business. In a word, it is perspective. As an owner you are often so close to the action that it is almost impossible for you to look at your business objectively, especially as a potential buyer might see it. This is one of the most valuable qualities that a business broker can bring to the table. Why is objectivity important? Because an understanding of the business, without being jaded by the prism of day to day operational hassles, history of past issues/troubles and the usual entrepreneurial woes, will allow a good broker to assess its true merits and establish its real value.

Seasoned business brokers also bring a lot of experience in the art of negotiating and deal structuring that most owners have never been through. There is virtually no other area where experience plays such a vital role, than in buying or in selling a business. Good brokers can also provide you with loads of information about similar transactions that will help you structure a proper transaction.

Having a broker on your side can also be a great source of psychological strength for an owner. Some say that selling a business can be as stressful as going through a divorce or losing a loved one. Brokers typically act as great personal coaches at a time of such anxiety and strain, thanks to their experience in similar situations.

Many of these issues are equally important for buyers to navigate. 70% of sales are to first time buyers who are generally unfamiliar with the process and who can be quite intimidated by the scale of the undertaking. They appreciate the value that an independent broker can offer with comparative market analyses; contract negotiations; legal, tax and accounting advice; banking and financial services and a myriad of other options. Experienced brokers will maintain good lines of communication and make sure all deliberations are conducted professionally and without undue pressure or persuasion.

As a proud business owner, when you decide the time is right to sell your business, you should talk to a professional broker about how they can support you through the often difficult process. If you are a prospective business buyer, and you are keen to have professional advice and assistance, you should strongly consider a business broker for the wealth of experience they provide.

Whether you are thinking of buying or selling, please contact ABC anytime for a confidential discussion.

Richie Lowe is General Manager of Affiliated Business Consultants Ltd (ABC) and Immediate Past Chairman of the Business Brokers Division of the Real Estate Institute of New Zealand.