When you’re selling property, a skilled real estate agent can help ensure that the job is done right. When it’s an operational business, that’s a different story. The truth is, the sale of a restaurant is highly-complex—and making one happen successfully is no easy feat. Fortunately, a professional with the right expertise can make the process a whole lot simpler (not to mention more lucrative).
If you’re putting your restaurant on the market, here’s how a business broker can help ensure that your sale is a success…
They know which information to prepare
Before a buyer purchases your restaurant, they’ll want to have a firm grasp on how well it performs. Recent income statements, balance sheets, and statements of cash flows will help them understand your eatery’s financial situation. A prospectus outlining key facts about your restaurant (including projections) is also a must. Only a business broker will have complete knowledge of the information buyers are looking for—and the necessary know-how to put it all together.
They know your eatery’s value
Valuing a piece of real estate is far from simple. Determining how much an operating business is worth is even less so. When it comes to your restaurant, you’ll need to look beyond revenue. First off, it’s a good idea to know the value of your assets, such as your kitchen equipment. Beyond that, consider your price-to-earnings ratio or perform a discounted cash-flow analysis. If you don’t know how to do these calculations, don’t worry. A business broker who’s experienced with restaurant valuations will.
They understand how your restaurant works
When you’re selling a restaurant, you need to work with someone who knows more than just the financial side of things. The professional you choose should truly understand the value of your business—and be able to communicate it to potential buyers. From the day-to-day operations of your eatery to how it beats out direct competition, a business broker will grasp the basics of how your restaurant is run. Armed with this information, they’ll be in the best possible position to prepare it for different buyers.
They offer negotiation expertise
A skilled business broker should be a negotiations expert. When it’s a restaurant they’re helping you sell, the process often entails an understanding of industry leases and financing—something many other sales professionals don’t have. Of course, negotiating for a seller is all about securing the best possible price, terms, and conditions. By choosing a tactful broker who’s good at finding common ground, you’ll greatly increase your chances of success.
They’ll manage the sales process
What you really need when you’re selling your restaurant is someone who can coordinate the various aspects of your sale. A business broker will make sure that all parties involved—from lawyers to accountants to insurance agents and beyond—are in the loop. It’s part of their job to manage the many moving pieces, right up until closing. While many real estate agents are used to filling this role when it comes to the sale of a property, a different level of expertise is required when you’re selling a business.
When you put your restaurant on the market, think carefully about the professionals you choose to work with. A business broker has both the skills and experience to navigate the complexity of your sale—and help ensure that it’s as successful as possible!
Ready to put your restaurant on the market? Reach out to learn how I can help simplify the process for a great outcome!