Commercial

Commercial


One of the most apparent things that you notice about this area is the lack of job infrastructure. For most people this can make the transition to full-time resident next to impossible.

Having personally experienced this exact situation, albeit some 17 years ago, I speak from experience when I say that there are a few options to consider.

Option 1

Except for a few business’s the economy works well only within what is known as the high season. Normally this is between June 22nd to September 15th. This effectively means that finding a suitable position is only at this time.

It’s not all bad news though, depending on the sector, you can get lucky and land a position with a company that can survive both on season and off season.

Option 2

Make provisions to open a small business. It’s often best to consider that for a business to sustain growth you are going to need to appeal to a very diverse market, in terms of language and age group.

The average commercial rent ranges from a base of 450€ to 1,800€ per calendar month. Something else to consider is that in terms of cost, commercial water and electricity are very expensive in comparison to domestic use.

Los Alcázares is a small town with a growing community of residents who live here most of the year. With this comes new opportunities other than just the conventional bar and restaurant concepts.

Starting a new concept is time-consuming and costly since the margin of failure is greatly increased. This brings us to the last credible option which is to consider buying a going concern.

Option 3

Buying a turnkey business can be a costly affair but the margin of risk is greatly reduced as someone has already done all the legwork. If a brand has been established, fixtures and fittings have been purchased, and the business has a share of the market then it may be easier to just consider a turnkey operation.

As a business transfer agent, we can help you to transfer licences and paperwork allowing for a smooth transition between seller and buyer. In some countries there is a recognised and credible formula to calculate the value of a business applied to turnover and profit. In Spain, a businesses good will is not recognised since it is regarded as non-tangible, irrespective of the duration that the business has been functioning for.

Business transfer is known as trespasso and is based on this concept, however, should normally include a tangible element such as a lease. If a lease is purchased than the legal obligation of rent is transferred over to the buyer. At the end of the lease, the lease may revert back to the owner of the building or the origin of transfer.

Either way, due diligence must be applied and a lawyer must be appointed to protect you from the small print which is the same in every country.

Join us next week for a look at selling a business in Spain, the pitfalls, valuations and process involved.