Are you one of the millions of Britons looking to start your own business? Approximately one in three UK adults now either runs a business or plans to start one within the next three years. Jumping into the café business might be a dream you’ve had for a long time, but there’s a process to go through.
Actually buying a café is a complex business, with multiple steps to go through before you get to the point of serving your first customers. That’s why a business broker is such a valuable part of the process.
In this guide, we explain what business brokers do and how they can help you enter the £4.6 billion independent coffee shop market in 2025.
What specialist business brokers do
Specialist business brokers are intermediaries that support the buying process. The reason why they’re called specialists is that they focus on a particular sector. In many cases, they’ve worked in the sector directly themselves, which is why they understand seller expectations and common deal structures.
Some of the skills they bring to the table include:
- Knowledge of the café sector.
- Business valuation skills.
- Access to specialist buyer lists.
- Negotiating the price and terms.
- Due diligence support.
- Confidentiality
Overall, they manage the entire transaction process from the first point of contact between buyer and seller to the final closing. It’s their job to ensure the sale goes through and both sides are happy. If you don’t know where to start, a business broker is usually the best choice.
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Business brokers that specialise in café and coffee shop sales
The main selling point of any business broker in the café sector is that they understand the niche as well as anyone else. That doesn’t just mean how sales are conducted, but what’s going on in the market as a whole.
It’s not uncommon for business brokers to have previously run cafes and coffee shops themselves. This knowledge allows them to understand not just industry-specific terms but market trends, common objections and the value of cafes that go beyond the financials themselves.
Additionally, they’ll often have professional networks of interested buyers and sellers from the sector. In many cases, there’s never a need to put up public listings or market cafes because they already have a network they can tap to facilitate a sale.
If this is the first time you’re buying a café or coffee shop, this is knowledge that will ensure you get the best possible deal on the fairest terms.
The benefits of working with a business broker when buying a café
UK SMEs are experiencing a mixed bag in a volatile economy. The latest stats reveal that three in ten SMEs achieved growth in the last year. Don’t let that put you off because the café and coffee shop market remains robust.
If you’re determined to make your café dreams a reality, here’s why your first call should be to a specialist business broker.
Access to exclusive listings
Business brokers put a lot of stock into their networks. Since sellers often choose brokers themselves, there’s already a healthy list of potential options for you to choose from. They’re usually not publicly advertised, and they’ve been pre-vetted, so you know you’re dealing with a serious seller.
Your broker will take the time to discuss your needs and what you’re looking for in a café, which helps them give you a shortlist of opportunities to start looking at.
Expert guidance
A good broker doesn’t just know the rules and processes that go into buying a coffee shop. They know the market itself. It means they’ll be perfectly aware of the UK hospitality market, alongside its current trends and what other businesses are going for right now.
It’s the type of guidance that stops you from making the most common mistake, which is overpaying for a business.
Objective valuation
Brokers are designed to be independent. They’re there to provide you with an objective valuation to bring clarity to a situation. It’s their job to value café businesses to arrive at a rough estimate of what it could be worth when all the tangibles and intangibles have been taken into account.
It’s an extra layer of protection from a seller trying to bump up the price because you’ll have a measuring stick that shows what the business is genuinely worth.
Negotiation skills
Brokers are skilled negotiators themselves. Whenever they act as an intermediary, they can take the emotion out of tough negotiations to get you the best possible price. It’s this experience that allows them to see things for what they are and get a better outcome for you.
Additionally, since they understand all the terms, warranties and indemnities, they’re not fixated purely on price but on the relevant clauses within the actual purchasing agreement. And that can be just as valuable as saving a few thousand on the final price.
Managing the due diligence process
The due diligence process is when a seller opens up their business and shows you everything you need to know about it. This includes the in-depth financials, contracts and legal status of the business. It’s by far the longest part of the process because it’s the most complicated one.
Skipping over the due diligence process leaves you exposed to unaccounted risks that could put you on the back foot from day one. A broker will guide this process and dig up the hidden issues and potential red flags that an amateur entrepreneur might miss.
Peace of mind
Above all, the advantage of using a broker is that you’ve got the peace of mind that you’re in the best possible hands. You wouldn’t try to work out a legal contract without a solicitor, and you shouldn’t try to facilitate a business purchase without a business expert on your side.
At Cogogo, we have a network of coffee and café shops available for sale now. Start the first step in the process of becoming a business owner by checking out our UK businesses for sale now.
