Understanding Add Backs when Selling a Restaurant
Understanding Add Backs when Selling a Restaurant can be difficult for inexperienced restaurant buyers and restaurant sellers to understand. The real value is more than just the bottom net profit number on the profit and loss statements and tax returns. When it’s time to sell a restaurant, how do you know what to add back to calculate the earnings before interest, taxes, depreciation,...Read More
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Virtual Brands do they work for restaurant owners?
By now, most people have heard about Ghost Kitchens and Virtual Brands, do they work? Virtual Brands are restaurant concepts that are online-only brands that offer pickup and delivery. Virtual Brands help restaurant owners create multiple brands to represent its existing menu. Restaurant owners have complained about third-party platforms only allowing restaurants to choose a couple searchable...Read More
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What is The Best Way to Sell a Restaurant?
The best way to sell a restaurant in today’s market with restaurants closing at a record pace since the pandemic started is a tough question to answer. BizBuySell’s 3rd Quarter Insight Report reflects a market-driven by opportunity seekers and business owners either well-positioned to profit or forced to exit. The Restaurant Owners forced to exit likely will have to close permanently or try to...Read More
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How to Sell a Franchise Restaurant?
The decision to sell a franchise restaurant can be challenging in today’s market. The good news is that if you own a Restaurant Franchise, buyers are lining up with interest. Close to 60%-70% of the restaurants for sale in Georgia that sell are franchise concepts. Franchise concepts are growing right now, while independent owned restaurants are declining. Franchise Restaurants are popular...Read More
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What is a Pocket Listing Agreement?
In the real estate industry in the United States, a pocket listing or hip pocket listing is a property where a broker holds a signed listing agreement (or contract) with the seller, whether that be an “Exclusive Right to Sell” or “Exclusive Agency” agreement or contract, but which is never advertised nor entered into a multiple listing system (MLS) according to...Read More
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What are the Benefits of Buying an Existing Restaurant?
The million-dollar question for buyers should be,” what are the benefits of buying an existing restaurant”? The Restaurant Industry has a high failure rate, around 60 percent of new restaurants fail within the first year. And nearly 80 percent shutter before their fifth anniversary according to CNBC.com Knowing these tremendous odds of failure, there are precautions prospective restaurant...Read More
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Why do I need to show proof of funds
Did you know the statement “proof of funds” is not in the Merriam Webster dictionary? This information is interesting because the words, “proof of funds” are used daily in the Business Brokerage world. Proof of Funds (POF) demonstrates how much money a person or entity has available in liquid assets. When purchasing a restaurant, you may need documentation showing your Proof of Funds to show...Read More
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Why Buy a Restaurant? Here are Four Reasons?
It’s a golden opportunity for buyers to buy a restaurant in today’s market. BizBuySell.com states website traffic has increased with Buyers and Sellers activity. Customer traffic on the internet’s largest Business for sale site now exceeds pre-Covid-19 levels. Traffic to the website was up 19% May 2020 compared to May 2019. Yelp recently updated its Local Economic Impact Report to provide...Read More
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3 Types of Buyers after Covid-19
EATS Restaurant Brokers talks to 3 Types of Buyers after the Covid-19 pandemic outbreak about buying a restaurant. The conversations we had before Covid-19 were much different than the conversations now. Today’s conversations come with a collection of unknown factors. Today’s market is buzzing with a large number of buyers and sellers entering the market. Some want to become an...Read More
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Commercial Lease is it an Asset or Liability?
Your current commercial lease is it an Asset or Liability? Most Restaurant Owners find a restaurant for lease and sign a commercial lease before they open their restaurant unless they are buying the building. The sad truth is that a large number of restaurant owners never really read the lease they signed, don’t understand the lease, can’t find the lease, and have no clue about the effect the...Read More
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Issues for Business Brokers after Covid-19
EATS Restaurant Brokers attended the Georgia Association of Business Brokers (GABB) Spring Conference last month. The conference was to educated Business Brokers about the issues for Business Brokers conducting sales transactions after Covid-19 depending on if they represent the buyer, seller, or both. The biggest take-away for EATS Restaurant Brokers was the different issues a Seller’s...Read More
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SBA Bank Lending for a Restaurant
SBA Bank Lending approval for a restaurant can be a challenging task to qualify for a buyer and can make the difference of a restaurant selling or not selling. Restaurants for sale that qualify for SBA lending on the market today are far less in numbers than buyers. The restaurants that sell for the highest and best price are restaurants that qualify for lending. Banks are willing and ready to...Read More
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