It’s the end of the year, and many restaurant owners are ready to sell. November and December are great months to prepare a restaurant to sell in 2025. The year’s first quarter is a busy time for restaurant buying activity. Preparing financials and documents should be a priority when considering selling a restaurant and getting the highest sales price.
Buyers will want lots of information on the restaurant for sale, and the story the financials and documents tell could help or hurt the potential sale. Buyers are eager to see detailed records that prove the restaurant’s financial health.
Dallas Restaurant Broker Dominique Maddox of EATS Broker says, “Going to the market for sale with updated and accurate financials, organized documents, and supporting documentation helps the resale process. Time kills deals; the longer it takes to provide buyers with documentation, the stronger the chance of the deal falling apart.”
Restaurant Business Broker tips for documents to collect before trying to sell a restaurant business:
-Tax Returns (last 2-3 years)
-Lease Agreement
-Profit and Loss Statements (P&L) -past three years
-Equipment list (only items you own)
-Balance Sheets
-Licenses and Permits
-Current Vendor list with names, account numbers, and phone numbers
-Franchise Disclosure Document (FDD)-required for Franchises only
Having these documents readily available demonstrates transparency and helps streamline the due diligence process, which is critical to keeping buyers interested.
Restaurant Broker bonus tips:
Modernize the Restaurant’s Financials
-Transparent and organized financials can make a difference in enticing buyers, especially those wanting a clear picture of cash flow and profitability.
-Ensure all revenue and expenses are up-to-date in digital systems, and consider hiring a financial advisor to conduct a pre-sale audit. Having well-organized financial statements, including P&Ls and balance sheets, builds confidence for buyers and supports a stronger asking price.
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
