Transaction Overview
Selling a business is rarely just about finding a buyer. In a complex transaction, moving from buyer interest to settlement often requires much more — price negotiation, lease coordination, approvals and extensive communication between multiple stakeholders. What ultimately gets a deal done is trust, coordination and the ability to solve practical problems as they arise.
We recently completed the sale of a cat café after approximately seven months of negotiations. The transaction involved three vendor shareholders, a Brazilian purchaser from a different cultural background, and a landlord with stringent requirements.
Adding further complexity, the purchaser did not intend to continue operating the cat café. Instead, he planned to convert the premises into a sushi business. This introduced a range of additional issues around the proposed use, lease arrangements, renovation works, CDC approval and fit-out.
At several stages, the transaction came close to falling through. Maintaining communication, building trust and continuing to find workable solutions became critical to keeping the deal moving forward.
Testing the Market and Reaching Agreement
The three shareholders decided to sell due to other commitments and limited time to continue managing the business. A purchaser emerged shortly after the business was listed, but his initial offer was below the vendors’ expectations.
Rather than rushing the vendors into accepting the first offer, we continued testing the market while maintaining strong communication and rapport with the purchaser. When no stronger offer emerged, we brought both parties back to the negotiating table. Through further discussion and negotiation, acceptable commercial terms were ultimately reached.
As it turned out, finding the buyer was the relatively easy part. The real challenge came next. |
When Business Brokerage Became Complex Lease Coordination
The purchaser’s plan to convert the premises into a sushi business required significant renovation and a change in the way the premises would be used. The landlord had stringent requirements regarding the proposed use, renovation works and lease arrangements.
What started as a business brokerage transaction gradually developed into a complex lease and project coordination exercise. Our Broker became an important point of communication between the purchaser, vendors, landlord and their respective legal teams, helping to clarify information, coordinate responses and keep the transaction progressing.
With the landlord based overseas, different time zones and communication delays added further complexity. During the process, the purchaser considered withdrawing several times, while the lengthy negotiations also created significant frustration for the vendors. Different cultural backgrounds and communication styles occasionally made discussions more challenging.
Through continuous communication, we worked to understand each party’s underlying concerns, resolve misunderstandings and identify practical solutions that all parties could work with. Over time, the trust and rapport built between the parties — particularly with the purchaser — became increasingly important.
Beyond Business Brokerage: Bringing the Right Expertise Into the Transaction
For the purchaser, one important practical question was whether the premises could be converted into a sushi business within a reasonable cost and timeframe. The fit-out concept, construction period, CDC approval process and the landlord’s acceptance of the proposed works all directly affected whether the purchaser could confidently proceed with the acquisition.
One of our Brokers also has extensive experience in commercial fit-out and project delivery. Drawing on that expertise, she assisted the purchaser in developing a practical approach to the proposed works and helped communicate the scope, timeframe and potential impact on the premises to the landlord.
Through professional input and coordination, the parties were able to identify a more practical, cost-effective and time-efficient solution while addressing the landlord’s key concerns. This reduced uncertainty for the purchaser and helped the landlord better understand the proposed works, removing an important obstacle to the transaction.
When a transaction encounters a genuine obstacle, having the right expertise within the team allows us to bring practical problem-solving capability into the transaction at the time it is needed most. |
As the project progressed, the purchaser developed confidence in the specialist expertise involved and subsequently chose to separately engage the Broker’s professional team for the design, CDC and fit-out works. The purchaser has since obtained CDC approval, and the fit-out is now nearing completion.
The Outcome
After approximately seven months of negotiation, coordination and ongoing problem-solving, the business successfully settled. The three vendor shareholders completed their exit, while the purchaser is now preparing for the next chapter with the new sushi business.
This transaction demonstrates that successful business brokerage can go far beyond simply finding a buyer. Complex transactions require someone who can identify the real issues, coordinate multiple stakeholders, build trust and bring the right expertise into the transaction when needed.
In this case, negotiating the purchase price was only the first step. The lease, landlord requirements, fit-out feasibility, CDC approval and cross-cultural communication all had the potential to stop the transaction from proceeding. Ultimately, the deal was completed because practical issues continued to be addressed and all parties were able to see a workable path forward.
Finding the buyer was only the beginning. Building trust, solving problems and bringing the right expertise into the transaction at the right time were what ultimately made the deal happen. |
