It’s the time of the year when restaurant owners are thinking about selling a restaurant in 2023. It’s been a challenging year with increased labor costs, supply chain issues, food price inflation, and a lack of government financial assistance.
At the end of the year, some Restaurant owners must sacrifice time spent with their loved ones to work in the restaurant during the Holidays. It’s a time of the year some Restaurateurs think about life after restaurant ownership.
Dallas Restaurant Broker Dominique Maddox says, “if a restaurant owner wants to sell a restaurant in 2023, I would advise getting a Restaurant Valuation now”. Talking with a Restaurant Broker now can provide restaurant owners with excellent points to discuss with their tax professional, to help them get the highest restaurant valuation.
EATS Broker provides three tips on how to get ready to sell a restaurant.
1st Get your documents in order– This is one of the essential steps in getting a restaurant ready to sell. Buyers will request several financial documents during the due diligence process, and sellers should be able to provide several copies promptly. Remember, time kills deals; buyers want information provided quickly.
Restaurant Brokers Checklist for documents to collect:
Three years of tax returns
Three years of Profit and Loss statements
Equipment List- should only include items owned by the seller
A copy of the lease and all amendments
Copy of Vendor/Supplier List
Copy of Employees with pay rates
POS Sales Reports
Sales Tax Filings
Franchise Disclosure Document (if franchise)
2nd Check Restaurant Equipment-the presentation of how the equipment looks and works will help or hurt the chances of a restaurant selling. Before listing a restaurant for sale, restaurant owners should inspect all restaurant equipment to ensure it’s working correctly.
Deep clean equipment
Clean hood system
Replace any missing knobs or handles
Broken restaurant equipment should be removed
Any equipment not included in the sale should be removed.
3rd Be Patient– Selling a restaurant could be a marathon at times if the restaurant even sells. Only 30%-40% of restaurants listed for sale will sell, and it could take 6-8 months to sell a restaurant. January-March is the busiest time of the year for restaurants to go under contract.
Thru the process, restaurant owners should operate their restaurants as usual and not relax on the standards and procedures because the restaurant is listed for sale.
EATS Broker is available to provide free, confidential restaurant valuations for all restaurant owners thinking about selling a restaurant.
For more information on the restaurant market and other available consulting services or restaurant valuations, contact Dominique Maddox at 404-993-4448 or email at [email protected]. Visit our website at www.EATSbroker.com.
