Selling a restaurant is a major process – and, once the deal has officially closed, it can feel like a huge weight has been lifted from your shoulders. However, there is still some work to be done after closing in order to hand off your business to the new owner smoothly. And if not handled correctly there could be serious consequences.
In this blog, we’ll look at (some of) what happens after the deal is finalized during a restaurant sale.
Keep in mind that this process is different for everyone If you’re looking for specific guidance, reach out to a professional.
What is Closing?
In simple terms, the closing process is when all the final details involved in your restaurant sale are sorted out and actioned on. It includes steps like finalizing the details of the purchase and sale agreement, the buyer’s due diligence, securing financing, taking stock of assets and inventory, legal elements, and much, much more.
Because there are so many intricacies and variables involved, closing can be extremely complicated and it can take a long time – sometimes multiple weeks or even months. However, it’s necessary in order for the deal to be completed.
What Happens if the Deal Doesn’t Close?
Restaurant real estate deals are complex, involving a ton of time, effort, and money. So, if something goes wrong during the closing process and your sale falls through, it’s not just a matter of stress or hassle – you could also find yourself taking a hit financially. In more severe or serious circumstances, you could even face a potential lawsuit.
That said, if you’re working with an experienced, professional restaurant real estate agent, the odds of this happening are slim to none. One of the many ways an agent helps protect your interests is by thoroughly vetting potential buyers (and anyone they’re working with) before you sign on the line.
Selling your restaurant? Check out these related blogs for more advice!
- Selling a Restaurant Business in Ontario: 5 Things To Know
- Here’s Why You Should Sell Your Restaurant With a Realtor
- How To Hand Off The Family Business
After the Deal
After closing is completed, your restaurant is officially sold – congratulations! However, there are still a few items to take care of. You won’t yet be able to pass over the keys and walk away.
Keep in mind that the post-closing process is different for everyone. Your exact list of responsibilities will depend on the type of role the new owner will be taking with your restaurant, whether or not there’s real estate property involved, timelines, and more. This is another big reason why it’s so important to sell your restaurant with a specialist.
Handing Off Your Team
Once your restaurant is sold, it’s time to talk to your staff and let them know. This step might seem simple on the surface, but it’s also complicated.
Like every other part of your sale, careful planning is key when it comes to staff communication. It’s important to be strategic about how you share the news, with whom, when you do it, and which details are included. Remember that this is not just big news for you – but also for your employees. Sharing the news too soon or in the wrong way could lead to panic, rumours, misinformation, and all sorts of stressors.
If it’s part of the sale agreement, you may also be working with the buyer to help them integrate smoothly into the business. This could mean introducing to the team, providing information about roles, and other training or orientation.
Looking for more in-depth tips on communicating with your staff and customers when selling your business? Click here to read our blog all about it.
Access to Brand Assets & Online Platforms
One of the biggest steps involved in closing involves transferring your lease, utilities, and any other relevant services over to the new owner. However, one of the more overlooked steps that comes after selling a business is providing access to digital assets.
Whether your restaurant has a website, social media channels, a subscription to an online advertising service, or anything in between, the new owner will need access to it. This means providing usernames and passwords for any and all online accounts.
Want to become more knowledgeable about restaurant real estate? Check out these blogs!
- Restaurant Sales: What’s On the Table During Negotiations?
- How Restaurant Real Estate is Evolving
- Everything You Don’t Understand About Restaurant Real Estate
Selling a Mixed-Use Property?
If you happen to be selling a mixed-use property with an attached residential apartment, you’ll also face various regulations with regard to landlord and tenant laws. In Ontario, tenants are granted various rights as part of the RTA (Residential Tenancies Act). With that in mind, there could be certain requirements on your end as part of the sale. For instance, if the incoming buyer intends to live in the attached apartment, you may be tasked with providing notice of eviction.
Ready to sell your restaurant? We can help! Reach us at ryan@carverealestate.com or call 416-618-0054.
