Selling Your Restaurant in Today’s Market?
No one with a restaurant for sale wants to endure an arduous and drawn-out selling process. Not to mention, the longer a restaurant stays on the market, the less value it appears to have. Buyers might start asking; “Why has this restaurant been on the market so long? What’s wrong with it?” This clearly isn’t something you want.
Plus. while your restaurant languishes on the market, you are still paying to run it. And most likely, you feel stuck and unable to move on with your business or personal plans.
Did you know the industry average for a restaurant to sell, from listing to closing is eight months?
Did you know only three out of 10 restaurant owners trying to sell their business on their own are successful?
If you are thinking about or trying to sell a restaurant don’t go it alone! A restaurant broker like Jim Pate at Restaurant Realty Company can help you streamline the selling process and get a deal closed. More importantly, he can get it done in less time than the industry average.
Don’t struggle through the selling process on your own. This could cost you a lot of money and time and offer no results. With that said, here are some of our top tips for selling your restaurant faster and easier.
Price It Right
While your brother, attorney, accountant and dentist may have an opinion about what your business should sell for, only an experienced restaurant broker familiar with the local market can tell you what it’s actually worth.
The first most important step in selling your restaurant is to know what it is truly worth in the currentmarketplace. Overprice it, and it’s doubtful it will sell at all. Underprice it and you lose a lot of your hard-earned money.
Only experienced restaurant brokers can tell you what the current market value is for your business. They have insider knowledge on what comparable businesses have sold for and what you can realistically expect to sell yours for. Your restaurant broker is looking out for your best interests. Well-meaning friends and family will most likely just tell you what you want to hear.
Jim Pate will offer you a “Broker’s Opinion of Value,” which is a lot like an appraisal. The broker will review your discretionary earnings to determine the best price to sell at for the current market. You will need to provide three years of tax returns, profit and loss statements, and year-to-date numbers for the current year.
Let’s Get Your Questions Answered. We can Save You TIME & MONEY
Packaging Your Restaurant to Sell
A thorough review of your lease is important to discover any potential landlord “gotchas” lurking in it that could make it difficult to sell your business. Jim Pate and our team have years of experience reviewing leases for hidden pitfalls, and can even negotiate a new lease assignment on your behalf.
Next, we create a listing profile with a catchy caption, a description of your business with all pertinent information listed and professional photos to give potential buyers the opportunity to review what you have for sale. All of this can be done without revealing your identity. In fact, maintaining confidentiality is extremely important when you’re putting your business on the market.
A restaurant broker will also help you get your books in order so potential buyers can see the true value of your business and expected cash flow.
Both of these steps are critical to selling your business more quickly. When buyers can see your actual numbers and determine if this is the right opportunity for them, you will sell your restaurant faster and have fewer headaches during the process.
The final step in packaging your restaurant to sell is making it look as good physically as possible for potential buyers to tour once they have determined it looks good on paper.
Making the Selling Process Smoother
Knowing the true value of your restaurant in the current market and having it professionally packaged to sell with the help of a restaurant buyer will make the selling process much smoother and successful more quickly.
Book a Call with Jim Pate and get your questions answered or email Jim to help you sell your restaurant, bar, or club more quickly and successfully in today’s market. Consultations are free, and Jim will answer all your questions regarding selling your restaurant, bar, or club.