It’s a busy time of year for buyers looking to buy a restaurant. What do buyers want to see when they inquire about a restaurant? The answer depends on the type of restaurant. Was the restaurant profitable in 2025? The answer will determine the documents and financials a buyer will request.
The average buyer, when signing a non-disclosure agreement, wants to see the basics for the restaurants in the Marketing Package from a Restaurant Broker, which usually consists of the following:
-Name and address
-Pictures
-Lease Information
-Some type of Financials
-Employee Information
-Equipment included in the purchase
The Dallas Restaurant Broker Dominique Maddox says, “Buyers will tailor their requests depending on the restaurant’s financial situation. This information allows buyers to better assess risks, opportunities, and challenges.
Restaurant Broker Tip when selling the following types of restaurants:
When selling a profitable restaurant, owners should be ready to provide and verify financials. The buyer’s focus will be to validate the information provided and ensure the success’s sustainability. When it comes to revenue verification, buyers will generally ask for the following documents:
-Tax Returns
-Profit and Loss Statements
-Sales Tax Filings
-POS Sales Numbers
-Royalty Sales Report (Franchise Brands only)
Buyers will use these numbers to evaluate the food, labor, rent costs, and any other numbers that get their attention.
When selling a restaurant business that is not profitable, owners should be ready to negotiate with buyers. Buying a restaurant that is not profitable is considered an Asset Sale. These types of sales transactions are common in today’s market. Buyers looking to purchase an Asset Sale usually have a few items to consider.
-Expense breakdown of operating, rent, utilities, and labor costs to identify improvement opportunities.
-Reason for the underperformance
–Restaurant Valuation and the cost of the furniture, fixtures, and equipment
-Turnaround strategy
-Break-even analysis
-Inspect restaurant equipment
When it’s time to sell a restaurant, packaging the restaurant correctly and telling the restaurant story will improve the odds of the restaurant being sold. The restaurant owner should understand that the process of selling a restaurant really depends on whether the restaurant is profitable or not.
Restaurant Business Tip: When a restaurant is listed for sale, buyers want to see everything!
Working with an experienced restaurant broker can help buyers and sellers navigate these steps efficiently and confidently. Let me know if you need help with your next restaurant transaction!
For more information on the restaurant market and other available consulting services or a complimentary restaurant valuation, contact Restaurant Business Broker Dominique Maddox at 404-993-4448 or email at [email protected]. Visit our website at www.EATSbroker.com
