FAQ

FAQ’s from Sellers

Do we act as the broker for the buyer or seller?

Depends. If our existing client base is interested in acquiring the center the buyer will pay us. If it is a company that does not have a formal agreement in place with Collins Acquisitions the commission would be paid by the seller. You would know well up front who we would be acting for.

What if I’m interested in retaining ownership but would like to cut back on my day to day work?

If you wish to relieve yourself of the stress of day to day management but retain ownership of your centre, we can introduce you to a specialist management company that can take over all the operational and administrative aspects of running your business, so that your role transitions from owner operator to passive investor.

Many owners who are not quite ready to sell find this option a good transition, as it enables them to retain financial control of the centre while outsourcing operational control, and over time they can decide whether to proceed to a full sale or to remain on a longer term outsourcing arrangement.

Who are the clients you act for?

They range from large companies with several hundred locations to local small groups looking to buy there first center. We aim to provide our clients with the best opportunity that suits them and the right buyer for you. We list many of our clients on our site under the heading ACQUISITIONS.

Can I have a Real Estate Agent act for me if i prefer?

Of course. If you choose to have an agent acting on your behalf we are happy to deal with them. Generally speaking we don’t see that a lot as it does not provide any great help given we are very transparent with our acquisitions and the price point doesn’t impact to justify the commission you’ll pay to one. In saying that if you would feel more comfortable please do.

Can i get an appraisal if I’m not interested in selling?

Yes. There will most likely come a time when the appraisal will help you and is far more valuable than you may realise. It gives you an idea about what the market is paying and if it is better to hold on to take advantage of what options you have.

How long does it take to receive an offer?

Generally it comes down to how quick you are at providing us with the requested information to do a proper review of the business. In short we can usually get an indicative offer within 7-10 days from when we receive your information.

What are the mains reasons for valuing the business?

Obviously the number one factor is financials but location, quality and viability going forward all play a part in what the value will be. It also comes down to which clients are interested. If your type of business only suits one client it makes it harder to value too high.

From the moment we meet to closing a deal how long does it take?

With so many external factors coming into an acquisitions such as; the Ministry, landlords, lawyers and local authorities it can be as quick as 60 days but potentially as long as 6 months.

What is usually expected of the staff if I sell?

Generally speaking our clients retain ALL the employees but will do their own due diligence to ensure there isn’t any problem with particular staff.

Is it a good idea to have a second opinion?

This is always a good idea but we try and take that out as we really do have an extensive list of suitable buyer’s so highly unlikely that is going to produce anything greater than what we can afford.

Is my information kept confidential?

This is always going to be up to you. We provide a non-disclosure agreement and can limit the information to only Collins Acquisitions eyes until we have the right buyer interested.

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FAQ’s for Buyers (clients)

What is the difference between a real estate agent and Collins Acquisitions?

Real estate agents specialize in selling property and business and in turn are paid by the seller. They aim to secure the best price and most favorable terms and conditions in the contract for the seller.

Collins Acquisitions works towards getting the best price for the purchaser by using our expertise to determine the best price suitable and ensuring the terms of the lease or contract are feasible. We generally find we work well with real estate agents if they are representing a vendor as we are on a similar wavelength and are both used to doing deals on behalf of our clients.

It is not uncommon for an agent we’ve dealt with in the past to call us if he lists a similar business for sale.

Specializing in buying (rather than selling) ensures you are dealing with a company working in your best interest and approaches every business with the goal to be getting the best price. We ALWAYS negotiate a price lower than our clients best price and ensure the total cost (with our fees) is less than if dealt directly or through an real estate agent.

If I sign an agreement to use Collins Acquisitions am I able to use another company or still look myself?

Yes. We never make our clients sign exclusive agreements. This ensures our clients can still sign with real estate agents, use their own employees or directly with the sellers.

It also makes it possible to present our acquisition opportunities to the best client suitable without being obligated to one client over another.

What are your fees?

Our fees vary depending on the size and nature of the particular transaction. We charge flat fees for small acquisitions and percentage on larger deals. The size and basis of the fee would be resolved at the time of our appointment.

Do you disclose my details to anyone interested in selling?

Generally speaking we promote our brand as the reason the seller should deal with us. Given we have acquired so many businesses for different companies that is usually enough for sellers to rely on. On occasion sellers will like to know who the buyer is and in that case we have them sign a non-disclosure agreement before telling them who it is that we will be acting for.

What information do you provide us when making a decision on the opportunity?

We expect the seller to provide sufficient information for you to be in a position to make an informed decision on whether or not to proceed with the purchase. Typically this would include up to date financials and other relevant details of the business such as the size of the premises, staffing details, lease terms and our advice on its potential earnings for the next year.  If our clients are after other information we are happy to provide that. Generally there is also an initial inspection on the business but that is done at the discretion of the seller and timing for our client.

Other than negotiating the price what else do you for us?

A lot. Our first point is identifying the opportunities our client is after by researching the market and checking our database.  Given the volume of clients we always have potential businesses that are interested in hearing from us. Once the right opportunity is determined and a price has been negotiated we assist in drafting the Letter of Intent, negotiate the terms of the agreement, assist the client with the required due diligence requested and finally negotiate a suitable lease.  It is often recommended to have a lawyer at hand which we are happy to work closely with on your behalf.

Do I pay anything if I do not purchase a business?

No. We will only be paid upon successful completion of the transaction.

How do you value the business or opportunity?

We like to inspect the business and location to ensure it meets a standard suitable to our clients. If this is satisfactory we look to reviewing the financials and strip back the expenses that weren’t necessarily relevant to the operation (i.e. owner salaries, personal vehicles leases etc). Along with the quality and lease helps determine the business potential thus leading us to a value.