When restaurant owners are thinking about selling a restaurant, it’s essential to approach the process thoughtfully and strategically. Every Restaurant owner has a different story about why they want to sell a restaurant, but some things are expected.
The restaurant business broker at EATS Broker provides steps to consider when thinking about selling your restaurant:
Determine Your Why: First, consider why you want to sell the restaurant. It could be due to financial hardship, health issues, personal issues, partnership disputes, or a desire to retire from the restaurant industry. Understanding your motivation will help guide the selling process.
Evaluate your Restaurant: Review the current financial health of your restaurant, including revenue, expenses, and profitability. Potential buyers will want to review your financial records. Restaurants that have accurate and up-to-date financials sell at a higher rate.
Prepare Documentation for sale: Gather all relevant documents, including financial statements, tax records, lease agreements, and any licenses or permits related to the restaurant. Having organized and complete Documentation will make the sale process smoother.
Dallas, Texas, Restaurant Broker Dominique Maddox says, “Getting an accurate restaurant valuation at the start of the restaurant selling process is critical. Selling a restaurant business can be challenging, and it takes an average of 6-8 months to sell a restaurant. Listing a restaurant for too high can negatively affect a restaurant for selling to a new buyer.”
Determine the Restaurant’s Value: This step determines the asking price for the restaurant. Restaurant owners can get a professional restaurant valuation through a professional business appraisal or by working with a business broker specializing in restaurant sales, like EATS Broker.
Market the Restaurant: Create a marketing plan to reach potential buyers. This will include listing your restaurant for sale online, working with a Restaurant Broker, and promoting the listing through various sales channels.
Qualifying Buyers: Screen potential buyers to ensure they are financially qualified and serious about the purchase. This will save you time and effort in dealing with unqualified buyers. When working with a Restaurant Brokerage, they will do all the screening for you.
Negotiate Terms: Once you find a potential buyer, negotiate the terms of the sale, including the purchase price, payment structure, and any contingencies.
Legal and Financial Due Diligence: Both you and the buyer will need to conduct due diligence to verify the accuracy of the information provided. This includes reviewing financial records, lease agreements, and other legal and financial aspects of the transaction.
Close the Sale: Once all terms and conditions are met, finalize the sale by signing the necessary legal documents and transferring ownership of the restaurant to the buyer. After the sale, work with the buyer to ensure a smooth transition. This may involve training the new owner and helping them adapt to the restaurant’s operations.
It’s essential to work with professionals like restaurant brokers, attorneys, and accountants to navigate the complexities of selling a restaurant. The process can take time, so patience and careful planning are essential. Be open to negotiations and stay flexible to reach a successful sale that benefits you and the buyer.
For more information on the restaurant market and other available consulting services or a complimentary restaurant valuation, contact Dallas, Texas, Restaurant Broker Dominique Maddox at 404-993-4448 or email at [email protected]. Visit our website at www.EATSbroker.com
