![]() ![]() ![]() Ideally, an inventory will be prepared and presented to you for consideration prior to any sale documents being signed. If an inventory has not yet been prepared, you should find out when it will be prepared and by whom. It is important to know exactly what is included in the purchase price, to avoid any nasty surprises on your first day of trade.Īn inventory should be prepared that outlines every item of stock that is included in your purchase. Stock and Valuationĭo you know exactly what you are buying? If not, then one of the first things you should do is ask the vendor. If not, consider it a big red flag!Īnother way to get over this hurdle is to partner with someone who does have experience running a pub or hospitality business. The vendor should be happy to (and in some cases, they are required by law to) provide you with that information before you sign any purchase documents. If you have an accountant, they should be able to assist you with this.Īs part of this process, you should do some due diligence investigations of your own, and look at the financials of the business, and take particular note of the hotel’s trading history, cash-flow, and balance sheet. A bank is unlikely to lend you a large sum of money if the business is likely to be an unprofitable liability. You will need to demonstrate that the business will be viable. If you do not have any prior experience in the industry, make sure that you are able to formulate a business plan for your lending adviser to look at. If you need to borrow money from the bank to fund the purchase, having prior experience in the hotel industry will be a big factor in securing finance. Whether you can obtain finance for the purchase can make or break your dream of owning a hotel. Here are our top 5 things to think about before agreeing to buy a hotel or pub: 1. If you are thinking of buying a hotel or similar hospitality business, make sure you are familiar with these unique features before you sign on the dotted line. Like any business, hotels have several moving ‘parts’ that need to work together so that the machine runs smoothly. ![]()
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June 2023
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