The frustration of trying to sell a successful business

[simon43]

Yes, you read correctly

This is just a frustrating rant!

I have been trying to sell my little airport resort for going on a year now, because my lung illness is steadily getting worse and I want to relax a bit.

It is frustrating to have a little resort that is typically fully booked out every night, making a very decent (and increasing) profit, yet no-one seems interested in taking it over from me.

I have the business listed with the 'big name' broker (and others), but not a jot of interest.

Any suggestions as to how I can sell up? I have already dropped the asking price by 30%. Or any other suggestions how I can 'offload' it, so that I can relax for a short while?

I am trying to figure out if I can let the staff run the business whilst I stay away during the week, and return at the weekends. But I suspect that my return at the weekend will only be to sort out the problems that have occurred during the week in my absence!

Open to suggestions

[JLCrab]

A Thai friend of mine asked a similar question about selling his business. i replied: The only way to sell a business in Thailand is if the buyer can think he is cheating the seller and not the other way around.

[NickJ]

Get a person to run it and buy it out. If they miss any payments take it back......

[The Big Mango]

Your full for now , how many 1,000s of rooms are opening up weekly ?

Therein may well be why buyers are cautious . Anyone with sense would surely look at projected profits as well past income.

Surprised you posted here though Simon , surely the buisiness forum is where this belongs ?

But hey nothing wrong in letting a few more people know its up for sale :-)

[KarenBravo]

The Big A resort, not far from Hayaek, has been up for sale/rent for at least three years now. I believe it was a successful business. The owner wants to go back sailing.

Saw yet another advert for it.

You're not the only one Simon.

[madmitch]

Too many accommodation businesses on the market. People are looking for bargains and at first glance at some of the places for sale many look very attractive but I doubt many turn in a decent profit and that's why they are for sale. It makes it extremely hard for those trying to sell established profitable businesses.

The strong baht doesn't help either.

[The Big Mango]

Just a quick numbers query ,

Asking price ......

Nett Yearly Profit ......

Lease left on the land ......

Might answer a few questions

Edited April 20, 2016 by The Big Mango

[Lamkyong]

Get a person to run it and buy it out. If they miss any payments take it back......

sort of into the frying pan out of the fire advise how stupid

[Shot]

How's the P & L?

[LivinginKata]

These sort of questions should not be listed on the forum. Would make it an obvious advert.

I would love to off load some of our properies ... but no one is buying umless it's a real fire sale price. Just do as we do and limp along. But I would no way leave it for the Thai staff to manage.

Edited April 20, 2016 by LivinginKata

[The Big Mango]

Pm me with answers to my post Simon , you never know...

[simon43]

I would be extremely happy to keep the business if it were not for this annoying illness. (I will PM details of the P&L etc). But it is very true that many hotels and guesthouses are not doing well - I see dozens of new, 3-year lease hotels in Patong advertised, but when you scrutinise the key-money, security deposit, lease costs etc etc, you see that they are certainly not a bargain.

My 2 Thai staff do a grand job, but I know that the good reputation of the business would go down if I were not on hand with my Basil Fawlty wit

What to do? I will probably die with a profitable business like a millstone around my neck!

[Don Mega]

What to do? I will probably die with a profitable business like a millstone around my neck!

let wife #7 take over and let her run it into the ground until it is worthless.

you wont die with a profitable business !!

Edited April 20, 2016 by Don Mega

[NickJ]

Not really Lamk.....I wanted to sell my business in Bkk. So I took on a decent guy. He didnt have the whole amount so I let him do a leveraged buyout over six years. Still quite good friends with him.

[simon43]

let wife #7 take over and let her run it into the ground until it is worthless.
you wont die with a profitable business !!

Don, you are way off with your numbers. After #3, I decided it was cheaper and more fun to rent by the night

[mgjackson69]

If I had to take a guess, it is that nobody here wants to pay for "blue sky"...that intangible worth beyond the property and improvements.

[LivinginKata]

What to do? I will probably die with a profitable business like a millstone around my neck!

I know exactly how you feel. I'll die the same way ...

[steelepulse]

Is the ROI after all expenses priced at a double digit multiple? If so, there's always someone looking to buy a biz that will generate 15% net. Try for the investor angle.

[Inepto Cracy]

Simon put the words On Sale or Promotion on the For Sale sign and the Thai folk will be therre like a shot. I have watched them at Central, if something is On Sale or Promotion. Don't reduce the price, then people will wait for further reductions. Rather put up the price by 80% and if you get a serious buyer, then you can always negotiate a price.

[puukao]

let me quote Buddha,

"trying to make profit is bad. help those in need for you were blessed. give materialistic things away to others, especially puukao."

you will be rewarded in the after life!!!

once you give to me, lungs better!!!

[KNJ]

If I had to take a guess, it is that nobody here wants to pay for "blue sky"...that intangible worth beyond the property and improvements.

Its called 'Goodwill'

[KNJ]

Do you have accounts if so how long?

Verified by accountant?

Gross and net profit?

Assets and liabilities? Land? Lease or owned?

Tax paid?

Formation as a company or business?

Taxes paid?

marketing info?

Breakdown of costs?

Future bookings?

Expansion possibilities?

That and other questions is what I would want answers too. Whether or not you have may influence a buyer.

[siam2007]

I would be extremely happy to keep the business if it were not for this annoying illness. (I will PM details of the P&L etc). But it is very true that many hotels and guesthouses are not doing well - I see dozens of new, 3-year lease hotels in Patong advertised, but when you scrutinise the key-money, security deposit, lease costs etc etc, you see that they are certainly not a bargain.

My 2 Thai staff do a grand job, but I know that the good reputation of the business would go down if I were not on hand with my Basil Fawlty wit

What to do? I will probably die with a profitable business like a millstone around my neck!

Did you never consider to hire a Farang resident manager to run the business and who might be willing to buy it later after he realizes it is profitable ?

[Jim walker]

Get a well qualified manager into run the business pay a good wage and also a part share in the profit and sit back and watch the cash roll in

[simon43]

... and sit back and watch the cash roll in

LoL, I already have the 'cash rolling in' part sussed - it is the 'sitting back' that I don't have.

Yes, this is the option that I've been pursuing, since who knows when it will sell. 90% of the business activity is at night, and this is handled fine by the night manager. I just need to sort out a morning manager to manage the customer check-outs. But the resort is too small to justify a western manager's salary for just morning work. So I have problems finding a Thai manager who can speak decent English.

Actually, the commonsense option is not to sell, because it is a cash-cow. I really need to sort out how the business can operate smoothly without me on-site.

[northernboy]

Sadly you are selling a job if your staff needs you there all the time.

That is not what most people want to have.

[BKResort]

You will have to priced really low......and negotiating up after showing that the buy may be very good......even with higher price.

That's Thai way.....

[NamKangMan]

... and sit back and watch the cash roll in

LoL, I already have the 'cash rolling in' part sussed - it is the 'sitting back' that I don't have.

Yes, this is the option that I've been pursuing, since who knows when it will sell. 90% of the business activity is at night, and this is handled fine by the night manager. I just need to sort out a morning manager to manage the customer check-outs. But the resort is too small to justify a western manager's salary for just morning work. So I have problems finding a Thai manager who can speak decent English.

Actually, the commonsense option is not to sell, because it is a cash-cow. I really need to sort out how the business can operate smoothly without me on-site.

Sounds like you need a new morning manger.

What about a western manger prepared to do split shifts, and do away with both Thai managers? Maybe you can include accommodation to save them the travel each day.

[SOTIRIOS]

...they will hold out.....

...they want it for free....

...as soon as they heard of your weaknesses....you sealed your fate.....

...that was your mistake...from the beginning.....

...if you want to PM me I know some investors...investment groups....outside of Thailand....so no local broker cr*p etc....

[boooker]

Get yourself a GM for 3 month salary and then option of buying it over a certain period.

I know many good one and they are looking for this kind of opp.

Can you give me a link of business or more details