Is it time to put your restaurant on the market? It takes hard work to build a successful business, and it doesn’t end once you’re ready to sell. The good news is, doing it right can help you reap the rewards of your efforts—and minimize the headaches that often go along with it. The first step is knowing how to get started.
Here are some of the major things to focus on when you’re preparing to sell your restaurant…
1) Prepare the paperwork
Unless you own the building that houses your restaurant, it’s time to dig up your lease. Depending on your circumstances, you’ll need to either find a buyer who’s happy to take over the one you have now, or work towards drafting something new. Either way, you’ll almost certainly need your landlord‘s cooperation—so get in touch with them as early as possible.
Examine the language in your current lease, and what it says about assigning and subletting. At each step of the paperwork review and preparation process, you should work with a lawyer who has commercial real estate expertise—and have them review all documents involved.
2) Make a list of equipment
You already know how important it is to have a fully-stocked kitchen. You also know how expensive it can be to replace essential equipment, and how frustrating it is when it’s not in good working order. Like you, your buyers will want a back of house that’s as fully functional as possible.
Take stock of the equipment you plan to include in your sale. Make a list, and add the make and model of each item. Providing as much information as you can now may prevent misunderstandings later—and make the selling process more efficient.
3) Gather the utility bills
Utilities. They’re one of the largest ongoing expenses most restaurant owners have to contend with. And the truth is, they can vary a lot from one space to the next (depending on factors like square footage).
Your buyer will want to know more than how their electricity consumption is measured. They’ll also want to get a sense of what their expenses will probably look like over time. The only way to provide that is through utility bills. Round up copies for their perusal, going back three years.
4) Get Your financials together
To state the obvious, your restaurant is a business. Your buyer wants more than just a space, some equipment, and your good reputation. They want to be sure that the components of your eatery translate to success. To paint the picture, you’ll have to present them with vital financial information.
The most important documents to include are those pertaining to sales, along with your balance sheets and income and cash flow statements. Presenting this information in an orderly way will make a good impression on buyers (and lead to less back-and-forth moving forward).
5) Rely on expertise
Nobody is an expert on everything, which is why even the most skilled restauranteur should lean on trusted professionals. From your real estate agent and lawyer to any contractors you might work with before selling, the right people can make all the difference.
If the experts you’ve worked with in the past have served you well, stick with them. If not, interview new prospects—and be thorough when you do. Once you have professionals in your corner who are skilled, talented, and knowledgeable, preparing a restaurant for sale becomes much easier!
Still figuring out how to prepare a restaurant for sale? Reach out to learn how I can help simplify the process!
1 Comment
Comments are closed.