To pull out of the sale of a business

[butcherswife]

Myself and OH are in the process of buying a leasehold business.

Bit of background - We met the seller mid April, seemed a reasonable guy, older, bit of a know it all etc. Since then we have met with the estate agent, landlord and our new employees and it transpires that the seller is actually quite a nasty piece of work. Is losing customers due to his attitude hence why the business is up for sale. He seemed desperate for us to get in and said everything was straight forward at his end and we could be in within a couple of weeks if we pulled our finger out.

We started legalities at the beginning of May and both us, the seller and landlord agreed we would aim to complete by 4th June. Sailed through negotiating the lease with the landlord, thought we would book a last minute holiday as we knew chances of getting a holiday would be slim. Whilst we were away we received a call from our solicitor telling us he had received the sale of business but it had a lot of things missing and he thought it best we met face to face to go through it. We met as soon as we were back from holiday and the two main things he hadn't included were TUPE of staff and list of fixtures and fittings we agreed would be included in the sale.

OH worked in the shop the day we had met our solicitor which is what we agreed would happen prior to completion of the sale - however he noticed some equipment had gone missing and when he questioned the seller he just said he had put it in an outbuilding even though the equipment is something you need day in day out. Ended up in a bit of an argument and OH was told not to go in again until we have completed.

Today marks 4 weeks that we replied to his sale of business and we haven't heard anything apart from receiving a copy of the utility contracts across on Friday telling us we had to take these on as he had a couple more years left in contract... Replied and said if he is so adamant we take them on he can contact the providers and do it.

I contacted the seller direct two weeks ago to chase and he was very abrupt and put the phone down on me saying he will get in touch his solicitor. Now feel a bit loathed to chase him as i can't be bothered with his attitude.

OH rang me this morning and wants to pull out as he is losing sleep over not knowing where we stand, i am really loathed to pull out as it's all OH's ever wanted and we are in a position where we are able to do it before we consider having a family. I think OH will really regret his decision a few months down the line. On the other hand my DM is terminally ill with not much time at all left and I feel like we really don't need the extra hassle and worry.

Would it be unreasonable to say if we haven't completed by XX then we are pulling out? Shall we just pull out now? Do we just put up and shut up?

Give them a dead line and a list of what needs fixing as in putting back as part of the contract. State if all the above is not sorted ready for a complete hand over on X date then we shall be pulling out of the purchase. Give them time to fix it all and firmly let’s them know you won’t be messed around anymore.

That sounds like a complete pain in the arse. I'm really sorry to hear about your mum op
It sounds like he needs this sale more than you so i would be very firm and say you want x, y and z and all sorted by x date. If he does not comply you will walk away. Hopefully it will give him a kick up the arse.

I would pull out - it looks like he is not making money whatever his accounts say - that the customers are leaving due to his attitude - god knows what staff think and he is trying to get away with selling or getting rid of equipment that would be nec to run a viable business

SOrry he is not being open and transparent - you need to walk away and look for something else

Thanks both - I felt like we were been a little oversensitive as it's the first time we have bought a business.
Also wasn't sure if we could set a deadline and call the shots but I think that what we need to do for our own sanity.
Thanks for the flowers Moustache a truly shite time

Sorry about the hassle OP, based on what you've said I'd pull out in a second. Is it a business that you really couldn't start from scratch? It seems insanely risky to buy something from a person who isn't trustworthy and doesn't have the basic acumen to be kind to customers and staff.

I'd definitely pull out. There will be other opportunities.
It sounds dodgy!!

Definitely pull out. Red flags all over.

Yes I would pull out.

• there will always be other opportunities

• he sounds dishonest, which would ring alarm bells - he could have been fiddling accounts, leave you with dodgy equipment - anything.

• he sounds a wanker so you may get there to find he's already been deserted by customers to the extent you'll find it difficult to rebuild trust.

• most of all, this is a time you won't get back with your Mum and I would not want the regret of thinking, we could have made more memories with her but we were stressing about that stupid business.

There will always, ALWAYS be other opportunities. This has red flags all over and I'd be delighted to tell this shyster where to stick it.

Yes pull out he sounds dodgy AF!

Oh gosh yes pull out, red flags all over this.

Good luck xx

Sonders we could do it from scratch yes but it would cost more than the price the seller is asking for (obviously this has massive alarm bells on) but we truly believe we could turn it around.

It has so many perks, the location is brilliant, the shop is aesthetically pleasing and really suits the brand we have created. The only real downside is the seller and his attitude.

I think my dilemma is more a pride thing, I don't want to be the one to pull out. I want the seller to pull out, and to be honest I wouldn't be bothered if he did.

Run for the hills

Haha Fizzy please can you share some of your delight with me!!

Hmmm, what a pickle. It seems like the ideal scenario is that you buy the 'business' and really just keep and use the physical assets. You should offer an ultimatum and stick to it.

In the meantime start looking at alternatives, get in there with the local commercial property agents. I've been looking for a shop unit for my small business and hardly anything has come up - although I've found the most useful places to ask have been the local chamber of commerce, the FSB and the neighbouring shopkeepers :)

If you really want to go through with it then tell them your offer has dropped in view of the damage to the business' brand.

That's all we want to do Sonders I want to offer an ultimatum. OH now wants to knock them down on price because of the delay but I think that will just equate to more issues.

I'm not sure where you are but we are in the North of England and there are new developments popping up all over that are using containers cast in concrete and turning them into shopping outlets. There is one just opened in Leeds and my dad is funding the development of one in Newcastle. I think they are really cost effective and great for small businesses (if it suits your brand)

Not heard of the local chamber of commerce but will have a look. There is one much closer to home but they want almost 4 times the amount we are supposed to be paying for this one

Thanks Dragon I like your wording.. i couldn't think how to word it properly. I told OH we both need to think about it today and we can sit down tonight and decide what we are going to do.

OP, there's soooooo many shipping container premises around my city too in the South West - unfortunately the developments are restricted to certain types of business that we either don't fall in to, or wouldn't be great for neighbours.

We're currently waiting on terms for a potential cute new space anyway so hopefully it'll work out ok. Dragon's suggestion is great though, it might be worth re-estimating for the missing equipment too if possible.