Brokering the sale of a popular local lettings agency

This residential lettings agency was established in 2000 in Greater Manchester. Over 24 years, the owner and his team had developed the agency’s remit from a portfolio of approx. 20 houses to 250. This small business had grown a portfolio of happy tenants and landlords and a reputation for excellent service.

Navigating the first steps in the business sale process

Having made the decision to sell his business, Peter was referred to Business Partnership by his accountancy practice. He appointed Alex to broker the sale of his business in November 2023 following an initial conversation where she impressed with her prepared and thorough approach to the sale process, and her knowledge of the local area and business landscape. Experienced in selling lettings businesses, Alex predicted strong demand from interested buyers.

Discussions began to reach a realistic valuation of the business. Alex prepared the calculations and explained to Peter how she’d reached the valuation. He agreed that the valuation was fair and realistic. She then set about creating the sales particulars and selecting the advertising channels to market the business and generate interest from prospective buyers.

A popular business listing

As anticipated, the sale was a popular one. Two offers landed within the first month of marketing the business and a third offer landed in January 2024. Peter agreed to meet all three prospective buyers in person. Alex set up the meetings and supported Peter to prepare him for the discussions. They collated background information on the business, financial data and client portfolio details that Peter would share with the interested buyers. Alex would lead those conversations.

Following the discussions, the vendor selected his preferred bidder – a good and fair offer from another experienced lettings business. Alex prepared the Heads of Terms and following both parties agreement, the due diligence process began.

Due diligence

The due diligence process took around 2-3 months to complete, and was fairly straightforward as the vendor had their business records, books and other data organised and up to date.

Taking care of the team

Staff were a key factor in this business sale. Peter wanted to ensure his two full-time employees would be looked after during and after the sale. The sale of the property also played a big role. There followed a short delay whilst the buyer secured funding for the purchase of the property. Three sets of solicitors were involved. During this time, Alex worked tirelessly to keep the momentum of the deal going and make sure things progressed.

Outcome

The sale was finalised on in October 2024. After some well-earned time off, Peter intends to fill his days with volunteering, dog walks, and working on developing his own rental property portfolio.

What the client says…

I never planned to appoint an agent to sell my business, but I’m really glad I did. When I met Alex I knew Business Partnership were the right choice for me. Alex said she expected there to be high demand from buyers – and she was right! It was clear she understood the market for a business like mine.

I wanted to make sure my staff were looked after and rewarded for their service and loyalty. More than anything I am content that they have achieved positive outcomes from the sale.

I felt well prepared for the meetings with prospective buyers thanks to Alex’s coaching. We prepared for them together and she guided me on what to expect. It was quite nervewracking, so I was glad when Alex took the lead and was there for support.

I remember exactly where I was when the deal was finalised – sitting on a beach in Anglesey. Alex immediately called to congratulate me on the sale.

I would happily recommend Business Partnership to anyone selling a business. Alex was professional, reliable and honest. She was transparent about the process and explained what to expect. She also made time to get to know me. It was very reassuring to have her on my side. I know I made the right choice.

Peter, Director.