Frequently Asked Questions

Some of the most common questions we are asked at Abacus

What is the difference between purchasing a business Freehold or Leasehold?

If you purchase the Freehold, fixtures and fittings you will own the property as well as the business. If you purchase Leasehold you will own the business, fixtures and fittings and the right, usually for a given period, to occupy the business premises for an agreed rent.

What are gross profit and net profit?

Gross Profit is the profit after deducting the cost for providing that service ie. takings less purchases. Net Profit is the profit after all other expenditure has been deducted and is the money the business has made for the financial year.

What should I do if I have found the business I want to buy but the bank has refused my loan request?

We may be able to help you. If you are looking to buy a business, leasehold or freehold, and you have been turned down for finance elsewhere then contact our offices. We assist buyers with finance and our lenders can often put together a financial package where other lenders cannot.

Is your service free to Buyers?

We offer Buyers professional advice on the different aspects of buying a Day Nursery business. We will help to identify the business that is right for you and also explain the various methods of financing your investment. Yes, this service is free. We can also simply explain the transaction process through to completion with a step-by-step approach.

I haven't bought a business before. How long does it take?

Initially you will arrange an appointment with us to view the business you have chosen. Once you have been introduced to the Owners we will provide the latest profit and loss accounts to provide the basis for any offer you make. If your offer goes on to be accepted you should allow six to eight weeks for the solicitors of both sides to agree the Draft Sale and purchase contract details.

Should both sides be in agreement, an Exchange of Contracts can take place. At this time buyers generally determine their funding requirements. Should it be a leasehold business, this period is also used to gather references for the Landlord. Once the Landlord is satisfied, a licence to assign the existing lease is granted and the transaction will then proceed to the Exchange of Contracts and Completion.