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Where to Find Businesses for Sale in the Philippines

Inside the business of business brokers.
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Suck at money? Congrats. You’re part of the 99 percent of people in their 20s floundering when it comes to finance. Adulting is hard, and money is harder—especially when it’s your own and not your parents. My Two Cents is here to break down everything you need to know about finance, business, and entrepreneurship. We’ll tackle all the basics, from how to get a business permit to how to invest in stocks, to educate the fledgling adults on how to not go broke.

Welcome to the idiot’s guide to money. Lesson No. 25: where and how to find businesses for sale in the Philippines.

There’s this misconception that, in order to have a business, you have to build it from the ground up. And while this is ideal as it gives you the experience to handle an enterprise, there’s another way to go about things: purchasing a business like you would a house. Business brokers are a relatively new concept, even though buying and selling businesses is not.

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Link Business is one of the few business brokers out there, now with a branch in the Philippines and an online platform that gives you access to the company’s 500 business brokers worldwide, 250,000 active buyers, 3,000 businesses for sale, and $2 billion worth of businesses listed on the website. Just like a real estate broker, a business broker guides you to make the smartest business decision, whether that’s maximizing the value of the business or knowing when to sell.

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“It’s about time for business owners and for those who want to own a business to have access to a confidential, reliable, robust process of buying and buying businesses,” said Efren Pascual, COO of Link Business PH.

The Business of Business Brokers

The Philippine branch of Link Business opened in early 2017, and currently lists more than 300 businesses. As business brokers, the company caters to those who are looking to sell their businesses and also purchase businesses as well.

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According to business broker Frederick Leopold Gumaru of Link Business PH, the most popular type of listings in their database right now are dominated by the food and beverage industry, namely restaurants, bars, and cafes. While this is in hot demand, interested buyers are also looking to purchase hospitals, banks, schools, barbershops, and even lending companies in the Philippines.

One might wonder why someone would sell a business they built from the ground up. Gumaru explains that it’s often practical problems that push people to sell their businesses, and businessmen are nothing if not practical. The main reasons cited are often: to gain capital from cashing in, plans to focus on other ventures, or to simply let go of an operation that is no longer profitable. Other sellers have also made the decision to list their business due to leadership and management issues, such as succession problems and the owner’s impending retirement.

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The sad reality is that not all business owners stay with their businesses until the very end, and sometimes, there’s no one to pass your business to when you get older. And sometimes, businesses might do better in the hands of others—those who are eager to own a business with the enthusiasm to revamp operations.

Gumaru shared how one of his clients was a 60-year-old whose children didn’t want to inherit his lending business. If he didn’t sell, the client would have taken a big loss, but by selling, he managed to make a profit out of the deal.

And this is where business brokers step in.

How Does It Work?

If you’re interested to buy or sell a business, Link Business Philippines’ platform lets you browse listings in the country. If you want to sell your business, the company offers a full-step guide on how to go about it, starting with conducting a business valuation that will estimate the economic value of your business and the price it should be sold for.

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Link’s business valuation method looks primarily at aspects like brand recognition, management team, physical location, existing debts, real estate, etc. But timing is everything, which is why value will change depending on the economic situation, financial analysis, accounts normalization, and business market value.

With Link, a business can be sold within three to six months, including the time it takes to sign all the paperwork (non-disclosure agreement, purchase agreement, etc.) to transferring the shares of the company.

When it comes to buying a business, interested buyers need only use the website like a regular e-commerce or online real estate website. For now, Link’s roster of businesses focuses on the following sectors: retail food, retail general, hospitality and leisure, manufacturing, corporate, franchise, rural and agriculture, restaurants and fast-food, and services.

Is it the Right Move?

Like anything, the decision to buy or sell will depend primarily on a feasibility study. If you want to start your own business, you’d have to start from scratch, from finding the right location, securing all the necessary business licenses and permits, hiring staff, and more.

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“[You need to do] all of these and one does not know if the business will succeed or fail,” noted Gumaru. “An existing business has these and a history of performance.”

There other advantages to buying or selling a business. For one, only the management is affected as the business is passed from one hand to another. Other employees won’t have to lose their jobs.

“A business owner must always have an exit strategy.  For whatever reason, they need to be able to sell the business,” explained Gumaru. “If the business closes, the owner is not the only affected party.  Employees lose their job. Suppliers lose a client. Even a client loses a supplier. LINK Business helps prevent business failures.”

It takes a village to run a business, but not everyone has to be affected if it’s sold instead of closed.

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About The Author
Anri Ichimura
Staff Writer, Esquire Philippines
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