Lance's comment on short term lease renewals has been re-printed as it was posted late last week and may have been missed by some readers. An article about the short term lease decision will be posted shortly.
COMMENTS:
22/10/2014 15:54:15 Path Intelligence "Path Intelligence tells us that 15,709 more people were onsite on Thursday 16th October, versus the previous Thursday. Dwell time was also up on this day, 91 minutes, versus 74 minutes. Your representative, Ivano, has access to the report and can provide more detail if required. Thanks Mark" Mark Smith, Marketing Director QVM.
18/10/2014 20:08:01 Trader Licenses for Sale "I would hope that the recent rumour that l have heard is not true..... And that is:
Any trader wishing to sell their business will only be able to offer a 1 Year License to the buyer. I have heard this from a couple of traders and a market officer has also advised that he believes this is the case.
I ask that our CEO and management team, if you could please either confirm this rumour as being true or not, and if it is TRUE please provide reasons, and if it is NOT then please provide details of what can be offered to prospective buyers.
So let me put this out there, based on the rumour, this means that if a PE or SL (remember a PE trader must convert to an SL license prior to sale) trader wishes to sell their business that the market is only going to offer the buyer a 1 year license. This means that the market has deemed your business as worthless effectively. You will most likely be able to sell your business for STOCK AT VALUE and FIXTURES price. You will not be able to ask for any GOODWILL based on previous years trading history. In a standard business sale case, you buy a business based on the following:
Stock
Fixtures
Goodwill - this is the most important part of any business sale. This is generally based on previous years sales, and the profit you have made. In most cases you can expect to pay around 1 - 2 years profit, depending on if the seller is asking for pre-tax profit or after tax net profit.
I really do hope for all of our businesses that the rumour is not true, as this is a really unfair thing to do, and could potentially result in a lot of animosity between traders and the QVM management. I know that of l was looking to sell, or if l was lucky and some asked if l would be willing to sell my business (which has happened in the past - I know l must be lucky), I would be very disappointed to discover this rumour was true, and would defiantly be looking into my legal options, based on the fact 3 year licenses have been issued in the past." Lance