Here we are at the end of another year, another year away from the dreaded GFC and another year of rebuilding confidence back into the minds of both sellers and buyers. From a sellers point of view the confidence that if they decide to sell after probably postponing retirement plans for a couple of years that they will realise the true value of the facility that they in most cases established from nothing, so as to one day be able to sell and fund their retirement years.
For the buyer it is confidence in taking the first step into an industry that they have observed for some time and heard so much about. It is also a step in many cases away from the perceived security of paid employment to the world of consulting with agents, researching the industry, discussing finance with brokers or bankers and laying bare their lives and manoeuvring through the myriad of bank forms. All this on top of revolving thoughts in their heads as to whether they are paying too much, or is now the right time to be making such a life changing decision.
The past twelve months have been close to the best periods of completed sales since I sold my first Self Storage facility in 2001 with settlements close to $19 Million Dollars to November. In recent times we have seen a sharpening of capitalisation rates and very good results for both sellers and buyers and bank interest rates at a sustained record low now for almost 18 months and the likelihood that this will be the case well into 2015, so the climate for sales to be successful is very good.
So it is the agent who drives the process in the beginning and provides a detailed Memorandum of Information so that the buyer can make an informed decision as to the actual financial performance of the business over at least the previous 3 years. If the agent has done his job sufficiently the Information package will be suffice for a buyer to get an agreement in principle from a financier that they want to be party to the acquisition. The seller in turn should have by now been informed that the potential purchaser that are about to inspect their property has been qualified to the point that they believe they have the capacity to complete the sale and the sellers precious money and time are not wasted.
So what should you look for in an agent when you decide to sell?
• SPECIALISATION; someone who understands your business as well as you.
• LONGEVITY; has been involved with the industry and associated financiers and consultants for many years.
• TRACK RECORD; sold many facilities and been personally involved in the process
• INFORMATION; researches and investigates the potential of your business
In closing I would like to take this opportunity to wish all my past clients both sellers and now owners the very best wishes in 2015.
Regards Trevor Berry
Self Storage Sales Australia
Member; SSAA, AIBB
R/E Licence NSW & QLD