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Issue 13
| Why use a Specialist Newsagency Broker? |
Why use a Specialist Newsagency Broker?
Many people believe that buying a newsagency is very much like buying a small business, in that, after you agree on price with the vendor, you get your solicitor to look at the contract and your accountant to look at the Profit & Loss Statement and it’s pretty much plain sailing!!
Well, it’s not that simple in the real world of business buying, because purchasing a newsagency is more complex and requires specialist advice and assistance throughout the transaction which can take up to 16 weeks to complete.
Many vendors who sell privately have no real understanding of the process as it has changed dramatically in recent years and so they often provide very limited or sometimes no advice to the buyer in this complex procedure.
A case in point is that purchasers are now required to undertake the Accredited National Industry Training Course. If not completed this means that the buyer may be relegated to a sub agent status with some publishers resulting in a halving of gross profit on those products.
Some newsagents and general brokers are unaware of this requirement – so too are most solicitors and accountants that don’t specalise in newsagencies.
A newsagency specialist broker will know exactly what the requirements are and will advise you right from the beginning about what has to happen and when, thus making sure that you fully comply with what is required and most importantly will be able to direct you to a panel of other industry specialists in the fields of: accountancy, finance, legal, insurance, shopfitters, Stocktakers and relief managers (for that well earned break). All of them specialise in newsagencies and it stands to reason that by utilising their services you would find the purchase a whole lot easier. Finding these contacts on your own can take a long time – however – by using a newsagency specialist broker you will have access to them right from the start.
Many buyers are unaware of the size of the establishment costs such as: stamp duty, lottery transfer fee, insurance, lease bonds, supplier bonds, publisher bonds, stocktaking fees, loan costs, legal and accounting fees and working capital. It is imperative that a prospective purchaser of a newsagency evaluates their individual establishment costs before embarking on a selection process,
Each purchaser’s circumstances are different as are those of each business and it is with this in mind that the assistance of a specialist newsagency broker who can quickly calculate how much you require before you get too excited and can refer you to a newsagency specialist finance broker who can make it all happen (providing you meet the lender’s criteria).
Australian Newsagency Sales does nothing else other than sell newsagencies – so if it’s a coffee shop that you want, sorry we can’t help you. But if it is a newsagency you want then you are talking to the right people. Talk to the specialists, who between them have over 70 years of experience in the newsagency industry.
If you are interested in joining or just finding out more about this exciting industry then don't hesitate to contact us.
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