Why Buy a Business in Brighton & Hove?
Brighton and Hove is one of the most vibrant and economically diverse cities on the south coast of England. With a population of over 290,000, a thriving tourism industry, two universities bringing in tens of thousands of students, and a growing reputation as a hub for creative and digital businesses, the city offers outstanding opportunities for entrepreneurs and business buyers.
The commercial landscape is remarkably varied. From the independent cafes and restaurants lining the Lanes to the established retail businesses on Western Road and the bustling takeaways of Hove, there is a business to suit almost every buyer's ambition and budget.
Step 1: Define What You Are Looking For
Before you begin searching for a business, take time to clarify your objectives. Consider the following questions:
- What sector interests you? Hospitality, retail, services, food and drink?
- What is your budget, including working capital for the first few months of trading?
- Are you looking for a lifestyle business or one with significant growth potential?
- Do you have relevant experience in your chosen sector, or are you open to training?
- What hours are you prepared to work? Some businesses demand evenings and weekends.
Having clear answers to these questions will help your business transfer agent focus the search and avoid wasting time on unsuitable opportunities.
Step 2: Register with a Specialist Agent
A specialist business transfer agent, such as Watkins Commercial, will have access to businesses for sale that are not publicly advertised. Many vendors insist on confidential marketing, meaning the best opportunities often never appear on general property portals. Your agent will vet opportunities, arrange viewings and guide you through the entire process.
Step 3: Viewing and Initial Assessment
When you view a business, look beyond the surface. Pay attention to:
- Location and footfall: Is the premises in a strong trading position? Is there passing trade?
- Condition of fixtures and fittings: What is included in the sale price? What might need replacing?
- Staff: Are key employees likely to stay on after the sale?
- Competition: How many similar businesses operate in the immediate area?
- The lease: How long is remaining? What is the rent? When is the next rent review?
Step 4: Financial Due Diligence
This is arguably the most critical stage. You should request and review:
- A minimum of three years' accounts, ideally prepared by a qualified accountant
- Recent VAT returns and bank statements to verify declared turnover
- Details of all liabilities, loans and outstanding debts
- Staff wages, PAYE records and employment contracts
- Utility bills and ongoing contractual commitments
We strongly recommend that you appoint your own accountant to review the financial information independently. Your agent can recommend experienced commercial accountants in the Brighton area if needed.
Step 5: Lease Review
The lease is often the most important document in a business sale. Key points to check include:
- Unexpired term: Is there sufficient time remaining to build the business?
- Rent: Is the current rent fair for the area? When is the next review?
- Alienation clause: Does the lease permit assignment to a new tenant?
- User clause: Does it restrict the type of business you can operate?
- Repairing obligations: Are you responsible for the full repair of the building?
- Personal guarantees: Will the landlord require one?
Your solicitor will review the lease in detail, but understanding these points early on will help you assess the opportunity more accurately.
Step 6: Making an Offer and Negotiation
Once you are satisfied with the business, your agent will help you formulate and present an offer to the vendor. Negotiations may cover the purchase price, stock valuation at completion, the handover period and any training provided by the outgoing owner. A good agent acts as an impartial intermediary, helping both parties reach a fair agreement.
Step 7: Legal Completion
With an offer agreed, solicitors on both sides will handle the legal transfer. This typically includes the assignment of the lease, transfer of the business as a going concern, and completion of all necessary documentation. Your agent will stay in close contact with all parties to ensure the process runs smoothly and on schedule.
Buying a business is an exciting journey, and with the right guidance, it can be one of the most rewarding decisions you ever make. If you are considering buying a business in Brighton, Hove or the wider Sussex area, contact Watkins Commercial today for a confidential discussion.