Sunbelt Business Brokers Clear the Skies for Doing Business in the Philippines
Azhar (Bill) Khan announced that he will be starting with 8 Professional Business Brokers and will be adding part time business brokers throughout the country after going through training at their new head office scheduled to open the later part of July, 2017.
Bill stated that, “The business brokerage is much tougher in Philippines than in the US because in the United States the average transaction is 80% owner financed and in only about 20% of transactions the owner has to put down cash. In Philippines almost 100% of the transactions have to be paid in cash. A person who has say 40 or 50 thousand dollars means you are only getting a professional fee on that amount whereas if you were in the US you'd be getting a professional fee of the 250,000 because the person would have leveraged. We do as many transactions as a brokerage in the US, if not more, but at the end of the day we make a lot less money as there is no leverage.”
“To help potential buyers, we now have Banks available willing to loan funds on operating business operations with at least a 3 year history along with some collateral from the buyer.”
Bill further added that, “F&B and tourism related businesses have always and will always be strong in Philippines. Recent trends also include consulting services, technology, Hotels, Resorts, Franchises & website platform development…. basically anything that has to do with software development. Consultants have also done well in IT as there are a lot of foreigners in this industry and we have seen recently with the half year tax result, many of those companies had to write a check out to the government. Restaurants, Clubs are another area that has done well as we had a number that had to write out tax checks.”
One significant question that was voiced, “Are there any industries where the opposite may be true, where foreigners seem to struggle, not do so well, or face issues that make running a business difficult?”
Bill quickly answered, “Real estate brokerage has been a very tough industry. Many of them are showing losses. Food and beverage can be challenging, but if it's done properly you can be very successful. A couple of companies doing auctions didn't do well. In Metro Manila, mostly the developers have been very successful with world class projects with ongoing growth expanding to other areas of the country with the current government are limiting more development permits in Metro manila area so growth can take place in other areas of Philippines. Further infrastructure projects are going to be very big for the country as population expands. Will see more highways, railroads, airports around the country growing at a fast pace.
For more information on Sunbelt Business Brokers Philippines:
Mr. Ed Totanoes, CEO, Sunbelt Philippines (+639) 17893 0711
Email: email@example.com or Azharholdings@gmail.com Website: www.sunbelt.ph