Selling a restaurant can be a time-consuming process than selling a business in general. How to sell a restaurant business is more than just having your paperwork, it requires good strategies, careful planning, and detailed preparation to get your restaurant in shape to sell. Here are a few things to know when preparing to sell your restaurant.
What Do I Need To When Ready To Sell?
Preparation is the key when you’re preparing to sell your restaurant business. Make sure your account is in order so that your potential purchaser can identify your assets and liabilities, which will be vital in agreeing to the purchase price. Ensure all licenses, assessments, and approvals are up to date. A buyer will want guarantees that all legal requirements and recommendations have complied.
Should I Update My Restaurant First?
You need to update your restaurant even if you weren’t in the market to sell. Presentation really matters in anything. The better the condition the restaurant when you put it up for sale, the higher the price it will fetch you. If you upgrade your restaurant, the money will be there.
Who Wants To Buy A Restaurant?
Just like many business transactions, restaurant sales start through word of mouth. Letting your friends know you’re looking to sell will let them tell anyone looking to buy. Your lawyer or accountant might also have some ideas of interested clients looking to get into the business. Talking to a trade group or business association is also an excellent way to find serious buyers if you belong to one. Beyond all these traditional methods, the Internet is also a place where you can seek interest in your business.
How Do I Appraise My Restaurant?
Setting the right price for your restaurant can be tricky. You might wait for years to sell if you don’t set the right price. It’s essential you understand your financial picture, as well as knowing the current market conditions when setting a price. If the business relies on any key assets, ensure you can provide evidence that you own them. This can apply to tangible assets such as computer systems and kitchen equipment as well as intangible assets, such as logos, trademarks, and websites.
Should I Sell the Business Myself or Hire a Broker?
Hiring a broker is an excellent idea if you don’t mind paying them. Your broker’s fee will be around a few percentages of your final sales price. While this may sound abrupt to some, the business broker earns their money by helping you get a price you may not be able to get on your own. Brokers have the best understanding of the marketplace and will help you look for qualified buyers. They have access to buyers and can help you bypass costly mistakes, which could cost you money and time. Paying your broker a little money from the deal is a lot better than not getting the restaurant sold at all.