There are numerous news articles in DUBLIN LIVE and news articles in the Galway Beo that are constantly reporting on the closure of yet another small enterprise, mostly in the food industry, and one would have to wonder why, and can the dreadful losses suffered by the entrepreneur be recouped, if so to what extent?
Sadly, business closures are a reality in the current market conditions, and although numerous factors can contribute to a business failing, we need to look at how to avoid a total loss. “Although key monies are falling in Ireland, it is not impossible to recoup some of your losses” says Raal Nordin CEO of DEAL CHASERS, a specialist business broker dealing with the sale of businesses in Ireland.
Unfortunately, many business operators are great at running their own coffee shop, restaurant or service business, but when faced with severe cash flow problems they tend to find advice that is not always the only {or correct} solution. Company liquidators are of course fast to call for liquidation, and the business owner being stuck for options, and being in a panic, embraces that option all to fast.
A solution is to try and sell the business first. Of course there is no way your initial investment is going to be recouped, but it beats having to file for liquidation. If you come out at the other end with no debts, that’s all that matters, and you have a clean slate to go it again when the market conditions return to a more favorable environment. Unlike liquidators charging heavy upfront fees, a business broker earns his/her money based on performance, if the business does not sell, you don’t owe any commissions.
More often than not, a new start-up has put ALL their monies on the table to open a business, after all, they want it to be the best! Its sad to lose all your monies and be defeated. “If I look at all the businesses closing, its sad to think that we could have assisted in rescuing the deal, getting some of the investment back, and retained staff and suppliers. Too many economic benefits are wiped out by a closure or liquidation” comments Raal further. “We often deal with Landlords on behalf of the tenant to ensure a smooth lease assignment of the premises, joined to an equipment sale and inclusive of some goodwill money” It all makes for a sane solution.
Advise to any business owner right now is to look at various options before simply shutting shop.
Author: Raal Nordin Managing Director Ireland
Deal Chasers Ireland – “Innovative Business Brokers”
Tel: 0818 183 037
Web: www.dealchasers.ie
Email: [email protected]