The best way to market your restaurant for sale is to hire a Restaurant Business Broker, but if you decide to do a for-sale-by-owner, keep reading this blog. The most important part of marketing your restaurant for sale is getting it ready to be sold. The prep work includes creating a marketing plan, deciding on a website to promote, and using social media.
For-sale-by-owners who are selling a restaurant use several free resources, the most popular one being Craigslist.com. The most popular paid resource is www.Bizbuysell.com. Once the restaurant is ready to be put on the buyer market, it’s time to attract potential buyers. Promoting the restaurant for sale in one’s local community and business network is a good starting point.
Keeping the sale confidential while working with buyers can be challenging. Restaurant Brokers usually require a buyer to sign a non-disclosure agreement and sometimes provide proof of funds before providing information. Restaurant owners should try to communicate only with qualified buyers. It’s important for the staff or customers to find out before the time is right.
The Dallas Restaurant Broker Dominique Maddox says, “A restaurant brokerage firm’s job is to take the buyer from showing interest to closing. Working with buyers can be the most frustrating part of selling a restaurant. Filtering out unqualified buyers can fill like a full-time job.”
The Restaurant Business Broker provides two different strategies for listing a restaurant for sale.
1. Blind Ad—Before signing the non-disclosure agreement, the buyer is not given the restaurant’s name. The buyer’s interest is peaked by reading a general write-up about the business that does not include the Restaurant Name. This strategy works well when a restaurant owner is worried about the confidentiality of the restaurant listing getting out to the public.
2. Non-Blind This type of listing will disclose the restaurant name and location before a buyer signs a non-disclosure agreement. This strategy works well if the restaurant owner doesn’t care who knows about the restaurant being listed for sale. Commonly, restaurant owners who need to sell quickly or have a popular restaurant will use this sales technique to increase buyer interest.
Once a buyer has shown strong interest and provided proof of funds, it’s time to move the deal towards the closing table. The offer comes first, which will include the purchase price, closing date, terms, contingencies, and stipulations. Once the offer is accepted, the buyer will start the due diligence process. It’s highly recommended to hire a Restaurant Broker or Attorney to help review offers and provide guidance on negotiation tactics.
When all the steps in the restaurant resale process are done, you’ll sign the closing documents, and the restaurant will officially transfer to the new owner.
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
