Who pays for closing attorney fees for restaurant sale?
Who pays for closing attorney fees for a restaurant sale, who does the lawyer actually represent? Once the buyer-seller has agreed to a purchase price, next, it’s time to open escrow and hire a closing attorney.
The closing attorney represents the buyer, and it’s the buyer’s expense to pay at the closing table. Most transactions only have a buyer closing attorney; occasionally, a seller will hire its own closing attorney.
Closing Attorney Fees for Restaurant Sales can differ from attorney to attorney. Unlike residential real estate transactions, restaurant buyers don’t need a closing attorney for the sales transaction to close, but it’s highly recommended.
What does a closing attorney actually do for the transactions? The closing attorney will provide a Bill of Sale, Non-compete agreements, settlement statements, and disburse closing funds to all parties.
Dominique Maddox, a Restaurant Broker and Founder of EATS Restaurant Brokers, says, “closing attorneys can be an asset or liability in a sales transaction. We always recommend closing attorneys that specialize in a business transaction rather than residential transactions.
The worst case I have experienced is dealing with a non-experienced attorney in Texas who was friends with the buyer. The buyer hired her “friend,” and he didn’t know what he was doing; he was actually learning on the job. He charged her $7,500 for a task that should have cost $1500-$2000”.
Closing attorney fees can fluctuate; find below three Attorneys EATS Restaurant Brokers recommends to clients for restaurant sales transactions and how the prices can differ.
Attorney #1
Base Closing: $1000-If cash transaction and includes a bill of sale, indemnifications, non-compete agreement, settlement statements, disbursements (wife fees included)
Base Closing with an institutional lender: $2000 includes all the above and dealing with lender requirements.
Seller Financing Docs: $350
Seller Wire $25
Lien Search: Cost but is included in the Base Closing fee
Draft Escrow Agreement: $350
Attorney #2
Base Closing $1200- If cash transaction and includes a bill of sale, indemnifications, non-compete agreement, settlement statements, disbursements (wife fees included)
Seller Financing Docs $400
Non-compete agreements-$200.
Lien Search $275-included in base closing.
Base Closing – All Cash (includes Bill of Sale, indemnifications,
Non-Competition Agreement, Settlement Statement and disbursements) $1,400
Closing Attorney #3
Base Closing – w/Seller Financing Documents $1,900
Base Closing – w/Traditional Loan $2,500
Base Closing – w/Small Business Administration Financing $3,500
Lien Search (the business name for UCCs and up to 2 individuals) $200
Escrow Agreement $350
Escrow Service Only $525
Mail Away Service $100
EATS Restaurant Brokers advice for using a Closing Attorney:
- Use a business attorney who commonly closes business transactions. Confirm your transaction will not be the 1st restaurant sales transaction they have completed.
- Agree on price and terms upfront for the restaurant sales transactions. Do not let the attorney charge you an hourly rate.
- Use the Restaurant Brokers Asset Purchase Agreement and have an attorney review. Do not ask the attorney to draft an agreement. This can be expensive, and some attorneys charge by the hour.
A closing attorney can be an asset or liability. It’s highly recommended to use a closing attorney for all restaurant sales transactions. If you don’t have a closing attorney, your restaurant broker should be able to recommend a good one.
Visit our website at www.EATSbrokers.com for more information on selling or buying a restaurant.
Read More
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, and amortization(EBITDA)? These calculations are essential to evaluate the value of the restaurant.
The EBITDA for restaurant valuations used for positive cashflow restaurants is crucial to discovering its actual value. This financial information is critical because today’s buyers will use multiples of the EBITDA to determine their offer price.
Dominique Maddox, a Restaurant Broker and Founder of EATS Restaurant Brokers says, “I let restaurant owners know the only add-backs I will include are the ones accepted by SBA lending professionals. Restaurant owners deduct many personal expenses from the restaurant’s books and records, but not all costs qualify as add-backs for a Certified Restaurant Valuation.
I have years of experience of providing Restaurant Owners restaurant valuations based on the EBITDA on their financials”. Once I find out the EBITDA, I can then assign a correct multiple to find out the recommended listing price”.
EATS Restaurant Brokers-Lender add-back cheat sheet: These are the following add-backs most bank underwriters will accept.
- Depreciation and Amortization
- Interest- on loan payoff
- Personal Travel and meals
- Seller’s auto expenses, including insurance
- One-time costs that are nor re-accruing
- Seller discretionary expenses, ex- life insurance, salaries to family members(not working)
- Severance and lawsuit settlements
- Manager salary-if seller is an absentee owner
The team at EATS Restaurant Brokers has expertise in factoring in add-backs when selling a restaurant. We know which add-backs and adjustments will get approved for SBA lending. Let us provide you a complimentary Certified Business Valuation; contact us today at sales@eatsbrokers.com or 404-993-4448.
Read More
Thinking about Selling a Restaurant?
Do you have an exit plan when it’s time to sell? Thinking about selling a restaurant is only the beginning of a process that can take 6-12 months to complete. Preparing a restaurant properly before hitting the sales market can make the difference between, receiving a solid offer from a buyer or selling at a considerable loss.
The lack of details when it comes to the presentation of the restaurant will make all the difference between a restaurant selling or not. On an average only 30%-40% of restaurants listed actually sell to new ownership.
Improve your changes of your restaurant selling by following the EATS Restaurant Brokers–How to prepare a restaurant for sale TIPS:
Tangible Items:
Back of House– Make sure all equipment is cleaned and in working condition. Clean the hood systems, service the high-ticket equipment, and CLEAN. Remove any items that are not working or can be seen as an eyesore. Make a list of any items that are leased with the vendor’s contact information with pricing and terms.
Front of House– Remove furniture, tables, and chairs that are dirty, broken, or torn. Hire a professional cleaning company to clean carpet, flooring, walls, windows, if you can afford. Remove decorations that can be seen as dated or that are dirty or broken. Clean or updated bathrooms.
Mechanical Systems– Have an HVAC company service HVAC system and keep documentation.
Non-Tangible Items: Documentation is not only needed it’s required!
Financial Books and Records- When it comes time to prepare a restaurant for a potential sale, restaurant owners need to buckle down and collect and organize financial information. Clean financial records are one of the most important factors in selling a restaurant for top dollar.
Most buyers will want to see three years of Profit and Loss statements, and year-to-date monthly profit and loss statement. Once the buyer has signed the non-disclosure agreement and provided the Restaurant Broker with proof of funds, they want the financial information ASAP. Time KILLS deals, financial documents should be prepared to share once the buyer has been financially qualified.
Professionally trained Restaurant Brokers only represent the financial information provided to the IRS and not the 2nd set of Books of Records that is unreported.
Menus & Recipes- Create a recipe manual with all the recipes and measurements to provide to the new buyer. Restaurants that come with systems and manuals are more attractive to buyers that are new to restaurant ownership.
Vendor List- Create a vendor list to provide to the new buyer. The vendor list should include all utility companies, food vendors, and other vendor’s company name, contact information, and any lease arrangements with monthly price.
Equipment List- Create an equipment list for only items that a buyer can lift and take with them if they decide to move locations. Do not include any items that the landlord owns, these items will include attached fixtures like hood systems, walk-in coolers, sinks, and grease trap.
A professional trained Restaurant Brokers can assist restaurant owners in the preparation of listing a restaurant for sale. A Restaurant Broker with help with the overall marketing package for the restaurant to be listed on the buyer market for sale.
Who has time to pre-qualify prospective buyers, educated restaurant buyers about the buying process, and help all parties reach the closing table? The answer is a Restaurant Broker!
Thinking about selling or buying a restaurant contact EATS Restaurant Brokers. For more information on the restaurant market and other available consulting services or restaurant valuations, contact Dominique Maddox at 404-993-4448 or by email at sales@eatsbrokers.com. Visit our website at www.EATSbrokers.com
Read More
Day in the life of a Restaurant Broker
What does a Restaurant Broker actually do daily? Dominique Maddox Founder and President of EATS Restaurant Brokers shares his thoughts about the Day in the life of a Restaurant Broker.
Restaurant Brokerage is like a BIG secret fraternity where there is limited membership allowed. A large number of people don’t know the responsibilities or tasks a Restaurant Broker has daily. I decided to track my activities on 9/11/2020 in a writing log.
5:15 am – Wake up and put on the 1st pot of coffee and drink water. Review my Cash Scoreboard with my to-do list for the day. Add any items that come to mind.
6:00 am- Arrive at the gym and go beast mode to get ready for the day.
7:15 am- Review closing documents, send reminder emails to buyers and sellers. Send wiring instructions to the closing attorney for all parties.
7:45 am – On the road to take pictures of a restaurant I recently listed for sale. I must arrive before the back of the house staff arrives so they will not be suspicious.
9:00 am- Conduct a conference call between a buyer and seller to discuss add-backs on the Profit and Loss statements, and why the POS sales number are different than Sales Tax Filings numbers.
9:30 am-Start responding to emails in my inbox and following up with the To-Do list for the day.
9:45 am – Call a landlord to discuss the lease assignment for the new tenant. Let the landlord know franchise training will be for 4 weeks, we should be able to close mid-October.
10:00 am -Follow up with a closing attorney that $10,000 buyer escrow has arrived
10:15 am – Review my CASH Report and touch all my pending deals. Start cold-calling for new restaurant seller leads.
11:00 am- Receive a call from a financially qualified candidate. The buyer needs help in understanding the price valuation of the restaurant. The buyer does not understand the definition of add-backs for a price valuation.
11:30 am- Send a potential seller lead a complimentary restaurant valuation. Seller sent a copy of a 2018, 2019, 2020 Profit and Loss statements for review 48 hours earlier.
12:00 am- Receive a call from closing attorney wire disbursements that have been made. I contact all parties expecting a payment to let them know to check their bank accounts for the deposit.
12:00-12:45pm- Mental break. Listen to some R&B, Jazz, and watch some ESPN or stock market show.
12:47-1:05pm- Conversation with a current seller client about buyer activity on his listing.
1:15pm- Receive email from the buyer that requests to see back of the house for a listing I’m advertising for sale. I call the buyer and they don’t want to sign a non-disclosure or show proof of funds.
1:40 pm- Follow up with Hungry Howie’s buyer to get some feedback on how the 4-week training is going.
2:05 pm- An interested buyer requests a copy of our Asset Purchase Agreement to review with the intent to make a formal offer. I draft the Agreement and sent it for review.
2:35 pm – Schedule a meeting between interested buyer and seller at the restaurant for Saturday morning.
2:50pm- Follow up with Papa’s Pizza To Go Area Representative to discuss the training schedule for the approved candidate.
3:10 pm – Review language in a 50-page lease to find out the option renewals, lease expiration date, security deposit, and any prohibited uses.
3:25 pm- Receive a referral from a Financial Advisor. His client has 3 sub sandwich franchises that he wants to sell and is interviewing Restaurant Brokers.
3:27 pm -Followed up with the lead and had a conversation with potential seller lead with 3 sub sandwich franchises.
3:50 pm- Request updated 2020 Profit and Loss statements from all seller clients, to provide buyers with updated numbers.
4:10 pm – Assist buyers with a business plan and give feedback for improvement.
4:25 pm- Read restaurant news related blogs, articles, and restaurant news updates
4:37 pm- Have a conversation with the seller that wants to increase the sales price because they need more money at the closing table.
4:50pm- Send website improvements for www.EATSbrokers.com to the website designer to make changes
5:10 pm – Work on restaurant valuation for a potential client
6:15 pm – Conversation with Amaya about Dinner
6:45pm- Online looking for new seller leads and responding to any missed emails.
7:15pm – Start writing a new blog
Restaurant Brokerage is a contact sport, brokers that are uncomfortable with multi-tasking, a challenging career, or demanding clients will not be successful. The life of a Restaurant Broker is to be a Subject Matter Expert in the Restaurant Brokerage Industry.
EATS Restaurant Brokers was formed to bring a new flavor to the Restaurant Brokerage Industry!
Thinking about selling or buying a restaurant contact EATS Restaurant Brokers. For more information on the restaurant market and other available consulting services or restaurant valuations, contact Dominique Maddox at 404-993-4448 or by email at sales@eatsbrokers.com. Visit our website at www.EATSbrokers.com
Read More
How should I sell my Restaurant?
How should I sell my restaurant is a question most restaurant owners will have to deal with before exiting their business. Similar to residential real estate owners, restaurant owners have multiple options to choose from. Each option has pros and cons, but which one is actually better?
Today’s internet has tons of information on selling a restaurant, how to do a valuation, and ways to market a restaurant for sale. Some people think they can actually become experts in Restaurant Brokerage overnight.
Dominique Maddox a Restaurant Broker and Founder of EATS Restaurant Brokers says, choosing the right option to sell a restaurant makes all the difference. Only about 30-50% of all restaurants listed for sale on the market will actually sell, the best way to increase your odds of selling a restaurant is working with a trained professional in restaurant sales.”
Restaurants for Sale by a Restaurant Broker– Restaurant Brokers are specifically trained in the Restaurant Resales process. On a daily basis, they view restaurant owners’ profit and loss statements, negotiate lease terms with landlords, work with banks for SBA approval, and work with Franchise Restaurant Resales.
Pros:
-Expert in Restaurant Sales Industry
-Knowledgeable about the Restaurant Sales Process
– Understands industry specifics and comparable financial data for specific restaurant concepts
-Has experience working with buyers thru the Franchise Approval Process
-Has resources and vendors to help during the buying process
-Has forms and documents for an Asset Purchase Agreement
Cons:
-Will require an exclusive listing agreement for 6-12 months
-Commissions range from 10%-15%
Restaurants for Sale by a Business Broker- Business brokers, also called business transfer agents, or intermediaries, assist buyers and sellers of privately held businesses in the buying and selling process. They typically estimate the value of the business; advertise it for sale with or without disclosing its identity; handle the initial potential buyer interviews, discussions, and negotiations with prospective buyers; facilitate the progress of the due diligence investigation, and generally assist with the business sale.
Pros:
-Trained on Business Brokerage
-Have knowledge of business valuations
Cons:
-Jack of all trades-sells everything ranging from a gas station, laundry mat, hair salon, and etc.
-Not specifically trained in selling restaurants
-Most do not understand the usual cost in restaurants for food cost, labor cost, rent cost, and normal add-backs.
Restaurants for Sale by Owner (FSBO)- For Sale by Owner, or FSBO, is the process of selling a restaurant without the representation of a broker or agent. Restaurant owners may employ the services of marketing or online listing companies or market their own restaurant. Typically, they represent themselves with the help of a lawyer.
Pros:
-No Broker Commission to pay
-Have 100% control of the sales process
-Can dictate listing price with no logical reason
Cons:
-Emotionally attached to the sale of the restaurant
-Most Owners will overprice restaurant for sale
-Do not understand the sales process of a restaurant, UCC lien search, Sales Tax Certificate, and lease obligations
-Do not have the right paperwork to write an Asset Purchase Agreement, Amendment to change the contract, escrow docs, or any other document related to the closing.
Franchise Restaurants for Resale by Franchisor-The Franchisors are in the business of maintaining open locations and getting new franchisees to build out new restaurants. Franchisors are not in the business of resales. Franchisors have started to try helping current franchisees sell their franchise when they want to exit the business.
Pros:
-Franchisors have the power to approve any potential new franchisees
-Franchisors have the sales information for restaurants
-Receive customer inquiries seeking to join the franchise
Cons:
-Do not have a dedicated department for franchise resales
-Are not trained on doing restaurant valuations based on profit and loss statements, tax returns, or an Asset Sale
-Conflict of interest
-Too much time required for franchise resales
For more information on the restaurant market and other available consulting services or restaurant valuations, contact Dominique Maddox at 404-993-4448 or by email at sales@eatsbrokers.com. Visit our website at www.EATSbrokers.com
Read More
How can I sell my restaurant fast?
Every restaurant owner wants to know, how can I sell my restaurant fast? The art of selling a restaurant is different than selling a residential home. The element they have in common is both a restaurant and a home need preparation before hitting the market for sale.
When selling a home, you can usually expect an offer within 1-3 months before owners start to panic. The average time to sell a restaurant is 6-8 months. Restaurant Brokerage Firms will usually ask for a 6-10-month listing agreement, some companies will require a 12-month listing agreement.
Dominique Maddox an Atlanta Restaurant Broker and Founder of EATS Restaurant Brokers says, “ restaurants with good books and records, goodwill, and location sell the fastest. The best sellers to work with are the ones that prepared their restaurant to sell for the highest and best price.”
EATS Restaurant Brokers provides a checklist of the items to be prepared and available before listing restaurant for sale:
List of fixtures and equipment – only items owned by the seller. Fixtures belong to the landlord. Broken equipment should be repaired before listing for sale. Restaurant equipment that does not work should be removed from the building.
Three years of profit and loss statements– is one of the financial statements of a company and shows the company’s revenues and expenses during a particular period. Once a buyer has signed a non-disclosure and qualified financially, they want to see the financials for the restaurant.
Time kills deals and buyer enthusiasm towards buying a restaurant. One of the biggest mistakes a seller can do is list a restaurant for sale and not have financials available for buyer review.
Three years of Federal Income Tax Returns for the restaurant- the tax returns should be the same ones filed with the IRS. Banks will request a Form 4506-T, Request for Transcript of Tax Return before approving a buyer for a bank loan.
The original lease and lease-related documents- besides financing the lease can be one of the most complicated parts of selling or buying a restaurant. Some restaurant owners have never reviewed the language in the lease they signed.
It is important to have a copy of the original lease and other docs associated with the lease, available for buyer review.
A copy of the franchise disclosure document (FDD), if applicable- A franchise disclosure document is a legal document that is presented to prospective buyers of franchises in the pre-sale disclosure process in the United States.
Restaurants can sell quickly but the real fact is that restaurants will take 6-8 months to sell. To improve the odds of selling a restaurant quickly, restaurant owners should treat the restaurant like a home. Prepare the restaurant for the market, collect and gather all docs before hitting the market. Once you do find a ready, able, and willing buyer, all the docs needed for closing are available to share.
For more information on the restaurant market and other available consulting services or restaurant valuations, contact Dominique Maddox at 404-993-4448 or by email at sales@eatsbrokers.com. Visit our website at www.EATSbrokers.com
Read More
3 differences between Business vs Real Estate Brokerage
Most would agree when it’s time for you to buy a home you look for a real estate broker. When you are considering to sell or buy a business, with or without real estate attached, you look for a business broker or if you are selling or buying a restaurant find a Restaurant Broker. Both transactions require the transfer of assets but the difference in the closing process, forms, skill sets, time investment, county regulations, licenses required, and involved professional parties are enormous.
Dominique Maddox, an experienced Restaurant Broker of 8 years and former Realtor for 2 years, identified 3 differences between Business vs Real Estate Brokerage. A brief review here will help you, whether you are considering buying or selling a business, to understand the differences.
EATS Restaurant Brokers provides 3 differences between Business vs Real Estate Brokerage
1st Coming up with a Listing Price-
Residential Real Estate professionals have comparable sales information provided on various websites to use as information. Business Brokerage sales usually remain confidential and the general public does not know the sales price. A Real Estate Broker can choose comparable properties to come up with a listing price. Business Brokers have access to data regarding comparable sales, however with the data, coming up with a sales price can be confusing.
Find below EATS Restaurant Brokers methods to price a restaurant:
Asset-Based Approach
The buyer pays the seller an amount based on the opportunity to benefit from the existing business and build-out. Most Asset Sales are restaurants that show little profit or not profitable, open for less than 3 years, or books and records are not clean. This is also known as the replacement method and only accounts for equipment and items buyer can remove once they leave space and goodwill. Walk-in cooler, hood systems, and any fixture remain the landlords. This method seller gets pennies on the dollar for equipment and initial build-out cost.
Income Approach
This approach determines an expected level of cash flow for the business using a restaurant’s record of past earnings. This approach will require the seller to provide Profit and Loss statements, tax returns once under contract with a buyer, and sometimes sales tax filings. This method helps the buyer understand the Earnings before interest, tax, depreciation, and amortization (EBITDA) which is a measure of a company’s operating performance. This method is preferred by bank lenders to qualify a business for lending and nets the highest sales price.
Gross Revenue Approach
This method is the most uninvolved that solely relies on a percentage of annual gross sales to determine the value and is not accepted by bank lenders. Restaurants usually will use a 15%-30% of gross sales to arrive at a listing price. The gross revenue method is not a reliable indicator of the value of a restaurant. This is because revenue does not mean profit; likewise, an increase in revenue does not necessarily translate into an increase in profits.
2nd Confidentiality– Real Estate Agents use multiple forms of advertising from individualized web pages, large signs in front of the property, social media marketing, video tours, displays in magazines and newspapers to get the word out. They host broker tours and open houses to invite the public to view the property, everything to get the word out. Business Brokers understand providing the client’s information to the general public could cause harm to the business. They use specialized business brokerage sites, and pre-approved buyer’s ability to purchase before providing a business name. Business Brokers protect the seller’s privacy by requiring an executed Non-disclosure Agreement (NDA) also called a Confidentiality Agreement (CA) before providing the name of the business for sale. EATS Restaurant Brokers require a Bank Statement, 401K statement, or letter from banker before providing financials on most listings.
3rd Agency– In most real estate transactions, different brokers will represent the buyer and seller even if both brokers are members of the same firm. Brokerages will usually teach Real Estate Agents not to represent both parties. This is a BIG difference in Business Brokerage, in fact, most Non-disclosure Agreement (NDA) also called a Confidentiality Agreement (CA) has dual agency language written. This means the Business Broker is acting as an intermediary, negotiating with both the seller and the buyer to create a satisfactory deal for both parties. Real Estate transactions can be handled with standard contracts. There are no standard contracts for business purchases, and the final agreement can look much different than the initial offer.
Getting the keys to a new home or business can be exciting, just remember they are two different processes. Make sure you have the right expert to get the job done!
For more information on the restaurant market and other available consulting services or restaurant valuations, contact Dominique Maddox at 404-993-4448 or by email at sales@eatsbrokers.com. Visit our website at www.EATSbrokers.com
Read More
What is the best time to sell a restaurant?
Timing is defined as the choice, judgment, or control of when something should be done. Most Realtors would tell you the best time to sell a house at its highest price point would be May-August. What is the best time to sell a restaurant? EATS Restaurant Brokers would tell you January is the best time to sell a Restaurant!
The months of November-December are the slowest months for restaurant resales. Buyers are spending more time with their families, wrapping up year-end items, and not worried about buying a restaurant. The number of buyers inquires decline on restaurant listings for sale and spike back during the months of January-April.
Once the New Year arrives the Restaurant Buying Season begins and it’s a beauty contest. The number of listings increase and buyers have more inventory to choose from. Restaurant owners should keep one thing in mind. It takes time to sell a restaurant. It typically takes 6 to 9 months to sell a restaurant, but for planning purposes, you should plan for a year.
Fierce competition with the number of restaurants for sales on the market makes the restaurant listing package extremely important. The decisions Restaurant Owners make in January can have a big factor in if the restaurant sells or fails in selling in 2020.
EATS Restaurant Brokers provide 3 Tips for Selling Your Restaurant in January
1.Tax Return numbers are important when selling a restaurant:
Restaurant owners can deduct legitimate restaurant expenses against the revenues they take in. Restaurants, however, have some unique expenses that they can deduct against their taxable income. The most common deductions include food costs, server and kitchen labor, operating and advertising expenses, and capital expenses.
I have seen some very interesting deductions that are not restaurant-related. The most-odd deductions have been $10,000 Hawaii Trip for Restaurant research, luxury car for marketing, food cost for a personal family reunion, and private school tuition for kids.
These expenses save the Restaurant Owner liabilities on taxes owed but devalue the business for resale. The first line item most buyer looks for when reviewing a Tax Return or Profit and Loss statement is the Net Income. Writing off non-restaurant expenses on the restaurant’s books and records actually hurt the chances of the restaurant selling.
Restaurant Brokers Tip: Pay the IRS upfront on total sales with limited deductions, to increase your chance of selling on the back end for maximum profits. Consult your CPA or Tax Professional on ways to increase your chances of selling your restaurant.
January is the perfect month to list a restaurant because you haven’t completed your tax returns for the previous year. This is a great time to review your past tax returns with a Restaurant resale specialist for a valuation. This strategy can help you talk with your CPA or Tax Professional on how to file your upcoming tax return. The difference of writing off $10,000-$50,000 of unnecessary expenses, could cost you $30,000-$150,000 on resale value using a 3x multiple.
2.Use a trained Restaurant Broker
When someone gets sued usually the first task, they accomplish is to hire a lawyer to represent them legally, explain the court process, and to be a consultant. Lawyers will usually charge a retainer fee or consulting fee to address your concerns. Why do people hire a lawyer and not represent themselves in court? The obvious answer is that lawyers are trained in law and the general public is not.
One of the most common statements in Restaurant Brokerage is that operating a restaurant is much different from selling one! Restaurant Brokers are trained in real estate and business brokerage professionals. Restaurant Brokerage professionals are specialists in the field of restaurant resales and restaurant consulting.
The best part of hiring a Restaurant Broker is no upfront fees in most cases. EATS Restaurant Brokers only earn a success fee when the restaurant is sold. We know how to locate the buyers in the market and understand the restaurant resale process.
3.Clean up the restaurant and books and records
January is a perfect time for restaurant owners to focus on any tax liabilities, suspended licenses, lawsuits, claims, UCC liens, or landlord default payments owed. All this information is important to know and to be working on before your restaurant is listed for sale. The closing attorney does a UCC lien on the restaurant equipment and will require a sales tax clearance letter from the seller to conduct a closing.
Cleaning a restaurant and fixing broken equipment could make the difference to a buyer with so many restaurants for sale on the market. The primary factor of what a restaurant will sell for is determined by its earnings, or owner’s cash flow, and the market multiple. Using these tips can help a restaurant owner sell in 2020.
January-April is the restaurant buying season if you are a restaurant owner who wants to sell this year, you should be listed on the market now. Restaurant sales decline in the summer when the home buying season is hot.
For more information on the restaurant market and other available consulting services or restaurant valuations, contact Dominique Maddox at 404-993-4448 or by email at sales@eatsbrokers.com. Visit our website at www.EATSbrokers.com
Read More
