Many people dream of owning a restaurant. A natural question arises, “Should they buy an existing
restaurant for sale by owner?” The answer is not simple and the process requires care and diligence.
To that end, there are innumerable sites on the Internet that provide valuable information about the process. Some, however, simply provide listings and this is not nearly enough. A prudent buyer in the market may have to choose between a restaurant for sale by owner and one represented by a broker. He should involve the services of a reputable and knowledgeable restaurant broker for the following reasons.
Professional Valuation
To put it succinctly, knowledge and experience are superior to guesswork and hope. Professional restaurant brokers have seen hundreds or more restaurants for sale. They are intimately knowledgeable about such factors as demographics, equipment, cash ratios and a host of other applicable items that are used to determine the value of an existing restaurant. A restaurant for sale by owner will often be valued based on what the seller wants, rather than what the market dictates.
Due Diligence
Similarly, restaurant brokers have the expertise and resources to confirm the facts and figures provided by the potential seller. This process of “due diligence” proves that the valuation determined is actually valid. Without this process, the buyer could make an enormous mistake by relying solely on facts provided by the seller.
Comparable Sales
Once a valuation has been set, the restaurant broker can provide a list of recent restaurant sales that can used for comparative purposes. There are a multitude of factors that determine a restaurant’s worth but the examination of gross valuations such as “sales price vs. gross sales” and “sales price vs. net profit” can give an overall indication and peace of mind about the valuation.
Proper Documentation
The conveyance of the title to a restaurant for sale by owner is a complicated and highly technical process. The proper documents must be prepared exactly, executed properly and signed in all the right places. Details of the agreement should be thoroughly overseen by a reputable restaurant broker or other responsible party to protect the interests of the buyer.
Impartiality
Perhaps, the most important role played by a restaurant broker is as impartial observer. Potential buyers may only see the upside to a purchase. A reputable broker will point out faults in possible sites and will work to find the right combination of price, potential and personality. A restaurant for sale by owner provides only one point of view, while a broker can see the larger picture.
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Eric and Robin Gagnon are industry experts and authors of Appetite for Acquisition. Appetite for Acquisition, their Guide to Buying a Restaurant was a 2012 Small Business Book Award Nominee and has been described in the business as "the definitive guide for anyone looking to enter the restaurant industry!" Readers will finish this book knowing how to acquire a restaurant in a way that is less painful, more profitable, and delivers a better return on their investment.
It may seem as though restaurants for sale and the State of the Union Address are two very different subjects but they actually have three important points in common.
The State of the Union Address just like any restaurants for sale presentation makes things sound a little better than they are. Someone has gone to a lot of work to polish the words and play up the best attributes, much as the political speechwriters polish the president’s points. Expect the brilliant copy highlighting the benefits of a restaurant for sale to play up the strengths and downplay the weaknesses.
The Internet has changed how it’s seen. President Bill Clinton’s 1997 address was the first State of the Union Address broadcast live on the World Wide Web marking just fifteen years ago that the first State of the Union Address was seen online. The same could be said of restaurants for sale. Popular listing websites like Bizbuysell.com and Businessesforsale.com were in their infancy fifteen years ago. Most restaurant buyers would comb the classified ads of their local newspaper to find listings of restaurants for sale. Today restaurants for sale are rarely, if ever seen in the paper. Instead, they are instantly pushed to dozens of online “restaurantforsale” portals along with social media sites like Facebook, Twitter, Linked In and Google Plus within seconds of the ad’s completion. This generates tremendous exposure for the listing immediately.
Another similarity between restaurants for sale and the State of the Union Address is that everyone has an opinion and they rarely agree. The State of the Union Address will be analyzed, discussed over coffee, studied, argued over breakfast and ultimately accepted or rejected. Restaurants for sale face the same fate. Those doing the buying will dissect the listing presentation, analyze the numbers, challenge the restaurant broker and ultimately accept or reject the listing.
George Washington delivered the first State of the Union Address before a joint session of Congress on January 8, 1790 in New York City which was the provisional United States capital in 1801. Who can say for sure there wasn’t a restaurant buyer and seller around the corner in a neighborhood pub making a deal to sell a restaurant at the same time?
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Eric and Robin Gagnon are industry experts and authors of Appetite for Acquisition. Appetite for Acquisition, their Guide to Buying a Restaurant was a 2012 Small Business Book Award Nominee and has been described in the business as "the definitive guide for anyone looking to enter the restaurant industry!" Readers will finish this book knowing how to acquire a restaurant in a way that is less painful, more profitable, and delivers a better return on their investment.
The tight credit environment created over the past few years has forced those interested in buying a restaurant to seek more creative approaches to their funding challenge. One option that’s gaining traction with many buyers is a 401K conversion option. The Employee Retirement Income Security Act (otherwise known as ERISA) passed in 1974 created the opportunity when it essentially passed the responsibility of retirement saving from the employer to the employee. So while buying a restaurant using these funds is not a new idea, it is one that is growing in popularity. A combination of tight lending practices and low stock market performances created by the weak economy make this a more attractive option than it would have been a few years ago.
Investing your existing IRA or 401(k) funds into launching a business of your own is a straightforward and tax free process. You don't have to take a taxable distribution, because you are buying stock, as an investment, in your new company. And you needn't apply for a loan, because you'll be using your own money, interest-free.
One benefit of buying a restaurant this way is the short time to close the transaction. Most transactions can be completed in less than a month. While it is quick, it’s not for the uninformed. The process requires that you work with a specialized firm that has the legal and financial resources to fund your deal with your retirement savings. Restaurant brokers helping you in buying a restaurant will have contacts for the best firms in the industry. One of the largest and most reliable is Guidant Corporation. They have funded over 7,000 businesses and assisted in transferring more than $3 billion in retirement assets. Once you’ve contacted a specialist like Guidant, then buying a restaurant with your own 401(k) or IRA funds can be as simple as finding following the steps below.
STEP 1 | Form a Corporation
The rollover company will form this corporation or work with your attorney during the formation process.
STEP 2 | Corporation Sponsors a 401(k) Plan
The 401(k) Plan is designed to allow for investment into your corporation and should come with a favorable determination letter from the IRS.
STEP 3 | Rollover to new 401(k) Plan
The next step is moving your retirement funds from your previous employer or IRA into the new 401(k) Plan.
STEP 4 | 401(k) Plan Invests in the Corporation
Your new 401(k) Plan purchases stock in the corporation. This 401(k) Plan now holds stock in the corporation and the business is debt-free and cash-rich from the sale of the stock. At this point, the corporation will now be able to purchase your new business or franchise.
The advantages of the plan are that you are now buying a restaurant on a debt free basis. You are able to invest directly in yourself and enjoy tax-deferred savings. If you’re interested in buying a restaurant using your 401(k) savings,
follow this link to Guidant Corporation for a review with one of their specialists.
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Eric and Robin Gagnon are industry experts and authors of Appetite for Acquisition. Appetite for Acquisition, their Guide to Buying a Restaurant was a 2012 Small Business Book Award Nominee and has been described in the business as "the definitive guide for anyone looking to enter the restaurant industry!" Readers will finish this book knowing how to acquire a restaurant in a way that is less painful, more profitable, and delivers a better return on their investment.
Restaurant brokers are often asked why someone should buy a café for sale when they are brimming with excitement and ideas to open their own restaurant. Here are just some of the advantages for buying an existing café for sale versus launching your new restaurant business from scratch.
The Cafefor Sale Comes with Certain Costs
When you buy an existing restaurant, you know the offer price on the contract is what you’ll pay. You can stick to a firm budget that includes your acquisition cost, legal fees, licenses and transfers. When you start building a restaurant from scratch, budgets have a habit of growing far beyond your original target. Restaurant startup projects often resemble the once popular “flip your house” shows on cable TV that typically end over budget and beyond the timeline.
The Cafe for Sale is Open and Operating
Time is money in every business. Your great restaurant idea can be operating tomorrow with the purchase of an existing concept. When you put together a startup you have to get permits, build it out, prepare the marketing, do the launch before you open the door and serve your first customer. Serve your first sandwich tomorrow after buying a café for sale instead of waiting months to go to market. There’s a window of opportunity to go to market and you don’t want to miss it because you’re fighting with the city to get a building permit.
The Cafe for Sale Has Existing Customers
Any brand new restaurant has to build the initial dollar of sales and every dollar thereafter incrementally. The first $100,000 of sales volume is the toughest to achieve. Starting from zero sales is a daunting task no matter how well known you are in the industry or how many customers you believe will visit your store.
The Cafe for Sale Has Income
An absence of sales means zero earnings when you build your own restaurant. Unless the café for sale you’re buying is an asset sale, an existing café for sale offers a profit margin from day one. When you build from scratch, everything is an estimate and nothing is certain.
The Cafe for Sale Reduces Your Risk
The final point in the comparison between buying an existing restaurant and building one from the ground up is the risk factor. In addition to existing sales and earnings, you know from the outset that the location meets local and state codes for operation of a restaurant.
When you compare a café for sale to a startup venture, it’s clear that one has advantages over the other. It is easy to see why the shortest time to market and greatest control over costs comes when you buy a cafe for sale instead of building one.
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Eric and Robin Gagnon are industry experts and authors of Appetite for Acquisition. Appetite for Acquisition, their Guide to Buying a Restaurant was a 2012 Small Business Book Award Nominee and has been described in the business as "the definitive guide for anyone looking to enter the restaurant industry!" Readers will finish this book knowing how to acquire a restaurant in a way that is less painful, more profitable, and delivers a better return on their investment.
Unfortunately for buyers, restaurant brokers do not come with a warning label. That means you have to do your own research to separate the average from the outstanding restaurant brokers. Ask these ten questions before making a decision.
1) How long have you been selling restaurants? Restaurant brokers with experience are always preferable to those just learning to broker businesses.
2. What was your business background before you started selling restaurants? The best restaurant brokers are those with a financial background like banking or accounting.
3. Are you licensed? Only fourteen states require a valid real estate license to act as restaurant brokers and these are subject to change. Verify the status of their license online at the state real estate web sites. You wouldn’t hire an unlicensed electrician; why would you hire an unlicensed person to represent you?
4. Do you have references or testimonials for restaurant buyers and sellers you’ve worked with in the past? Most restaurant brokers post this on their Web site.
5. What is your educational background? It’s not a requirement that restaurant brokers have a formal education to sell businesses, but given the choice between someone with an MBA and someone that didn’t complete trade school, who do you think will bring the most to the table in financial due diligence?
6. How many restaurants for do you have now and how many restaurants have you actually sold? Getting a listing and having experience in selling restaurants are two different things.
7. Do you have prepared contracts for purchasing a business? The answer here should be yes, as you don’t want to pay an attorney to develop a contract for your purchase.
8. What other resources do you have available to assist me in the purchase of a restaurant? Strong restaurant brokers have contacts and resources for construction, insurance, liquor licenses, and all the other items that can surface after the sale.
9. Do you belong to any state organizations? Most states have strong organizations for restaurant brokers. A competent professional is probably a member. The business brokerage associations generally include an ethics component and experience or education requirements to join.
10. Do you belong to any national organizations? The IBBA, or International Business Brokers Association, is one of the largest in the industry. Qualified restaurant brokers are generally members.
Even though restaurant brokers don’t come with a warning label, having the answers to these questions can help you make a decision about the best choice for aiding you in buying a restaurant.
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Eric and Robin Gagnon are industry experts and authors of Appetite for Acquisition. Appetite for Acquisition, their Guide to Buying a Restaurant was a 2012 Small Business Book Award Nominee and has been described in the business as "the definitive guide for anyone looking to enter the restaurant industry!" Readers will finish this book knowing how to acquire a restaurant in a way that is less painful, more profitable, and delivers a better return on their investment.
Before moving forward with a signature on that restaurant for lease read this article and avoid costly mistakes that have long term credit implications.
Strategy One
Have an exit strategy built into the restaurant lease in case everything goes wrong. No one goes into the restaurant business expecting to miss the mark but sometimes, life get in the way. Partnerships or marriages go south. People get sick. Before you know it, you’re digging out that signed agreement with the landlord you didn’t pay enough attention to when you were searching for a restaurant for lease and discovering you left off the “out” clause. Before signing, make sure there’s a reasonable way to terminate the lease. You don't want a huge financial obligation hanging over your head for the full term of the lease.
Strategy Two
Make sure you are dealing with a landlord on a restaurant for lease that allows you to transfer the business. Don’t wait until you get an offer too good to refuse and learn your landlord has no specific requirement to execute a transfer in a reasonable period of time. Your agreement on a restaurant for lease should require a specific, measurable time frame for a lease transfer and not the most common language saying “it shall not be unreasonably withheld.” To protect your credit, be certain your document says up front that when the lease is assigned or transferred you have no further financial obligation under the personal guarantee. Landlords are famous for transferring the lease and keeping the original tenant on the hook as a guarantor. You don’t want your credit guaranteeing the next operator’s performance.
Strategy Three
Know your costs up front for any transfer on a restaurant for lease you are considering. Some landlords will allow transfers but they attach undefined costs to the process. You don’t want to prepare to sell and find it’s going to cost you thousands to make it happen.
Strategy Four
Negotiate whenever possible for vacancy rates and anchor abandonment. You can operate a great restaurant but if the major anchor tenant abandons the complex and you’re in the midst of a ghost town, it can destroy your restaurant business and your credit. Write language into the lease stating that if the center become less than 70% occupied, your rent reduces.
Strategy Five
Carefully read and understand the administrative clauses, common area maintenance costs, tax increases and all other charges associated with any restaurant for lease. Many tenants look only at the base rent and don’t cap or fight for these other charges. You can find your credit destroyed even if you make every base rent payment but miss paying special assessments or other charges that get folded in as common area maintenance charges or CAMS.
Use these five strategies to protect your credit any time you’re negotiating on a restaurant for lease or use an expert restaurant broker to negotiate these terms for you.
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Eric and Robin Gagnon are industry experts and authors of Appetite for Acquisition. Appetite for Acquisition, their Guide to Buying a Restaurant was a 2012 Small Business Book Award Nominee and has been described in the business as "the definitive guide for anyone looking to enter the restaurant industry!" Readers will finish this book knowing how to acquire a restaurant in a way that is less painful, more profitable, and delivers a better return on their investment.
Tim Tebow and the Denver Broncos success is paying off forColorado Sports Bars. That's according to restaurant broker John Jordan of We Sell 
Restaurants Colorado.
Colorado sports bars are celebrating along with the fans after Tim Tebow and the Denver Broncos pulled off an unbelievable overtime win against the Pittsburgh Steelers. Colorado restaurant broker John Jordan with We Sell Restaurants reports that sports bars in the Colorado front range are experiencing record sales results on the heels of the Broncos success.
The Broncos started the season with one win in their first five games and had the looks of a rebuilding year. When Coach John Fox made the switch to Tim Tebow something magical started happening both on and off the field. Now sports bars are feeling the wins as Colorado bars and restaurants feed those hungry for more wins and thirsting for a playoff victory. The Broncos finished the last eleven games with a 7-4 record and won the AFC West division. With a six game winning streak and some miraculous comeback victories the Broncos started making believers out of not just the city of Denver, but the entire nation. The 6 pm (MST) start rematch against the New England Patriots on Saturday will score another win for bars and restaurants across Colorado. Timing couldn't be better says restaurant broker John Jordan. They expect to be packed with people partying, drinking, eating and waiting to see how the Broncos end the season for the Patriots.
Dean Neni, owner of a local sports bar (Parkway Grill) in Aurora says “ Every seat, every bar stool was full one hour before and for hours after the game. It was crazy, it is so good for the Colorado economy and all the local sports bars and restaurants throughout the state.”
Vaso Anest, owner of Servinos Underground, a 500 seat sports and entertainment club in Parker says, “ It has been awesome, I love Tebow. We are adding a 120” HD projection screen for the game Saturday and are going to add another one if they win Saturday. We will have great food and drink specials including 25 cent wings so come on down and party for the game and dance the night away with live rock and roll with Under The Radar when the game ends.”
Restaurant broker and Franchise Partner, John Jordan can be found online at www.wesellrestaurants.com.
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Eric and Robin Gagnon are industry experts and authors of Appetite for Acquisition. Appetite for Acquisition, their Guide to Buying a Restaurant was a 2012 Small Business Book Award Nominee and has been described in the business as "the definitive guide for anyone looking to enter the restaurant industry!" Readers will finish this book knowing how to acquire a restaurant in a way that is less painful, more profitable, and delivers a better return on their investment.
The new year has all the experts predicting 2012 restaurant trends. Nation’s Restaurant News published an article last week titled, "Industry Experts Forecast 2012 Trends" asking heavy hitters in the industry to share their expectations for the year ahead. Here’s the We Sell Restaurants take on the industry’s predictions and how these predictions might affect the restaurants for sale market.
Hudson Riehle, senior vice president of research for the National Restaurant Association says “it will continue to be a better environment than it was in 2008, 2009 and 2010.” What does that mean for those buying a restaurant? As restaurant brokers, we'll tell you to expect any restaurant for sale achieving better sales to deliver much stronger earnings to the bottom line. The past three years have been about controlling costs and margins. When top line sales growth hits, net profit margins are going to look very good. Ultimately, this will lead to higher pricing of restaurants for sale.
Nancy Kruse, President of The Kruse Company predicts growth around what she calls: premiumization, customization and miniaturization in the industry. Premiumization refers to upgraded offerings. Customization reflects a “have it your way” trend and miniaturization refers to small plates. All of these will affect restaurants for sale. As restaurant brokers, we anticipate that some tired old concepts that don’t fit any of these models (think buffet style restaurants) will face lower multiples and ultimately softer selling prices.
Bonnie Riggs, a restaurant analyst for The NPD Group forecasts, “Fast casual will remain hot. The segment’s year-to-year traffic rose 6 percent for the year ended Oct. 31.” We Sell Restaurants agrees with this analyst and we see this playing out in the restaurant for sale market with landlords giving preference to fast casual over other concepts when leasing a restaurant or replacing an existing operator.
In the same article, another industry executive, Darren Tristano, foresees that “consumers hesitant to spend want twists on the familiar, such as comfort foods with gourmet.” The restaurant for sale market is not as eclectic. Proven concepts have more traction than the unfamiliar.
When it comes to commodities, John Barone, president of Marketvision estimates that “beef prices will rise” and restaurants will experience “lower year-over-year corn and wheat prices, albeit these will be coming down modestly from record-high levels.” Those in the market to sell a restaurant will have already experienced commodity increases that cost precious margin in the past two years. This is reflected in the financials of any restaurant for sale. Those heavy on beef (think of the saturation in the gourmet hamburger market in the past two years) may find it a tougher market to sell if their primary costs go even higher.
Finally, president and chief executive of the International Franchise Association, Steve Caldeira, projects that “franchising is expected to grow in 2012, with, franchised quick-service restaurant sales increasing an expected 4.4 percent and franchised full-service restaurant sales expected to increase 4.2 percent in 2012.” Continued strength in the new franchise market trickles down to franchise restaurant resales. We Sell Restaurants continues to expect strong growth from existing franchise restaurants for sale in 2012 as they change hands.
That’s our take on the national forecast and the impact on the restaurant for sale market. Feel free to comment with your thoughts.
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Eric and Robin Gagnon are industry experts and authors of Appetite for Acquisition. Appetite for Acquisition, their Guide to Buying a Restaurant was a 2012 Small Business Book Award Nominee and has been described in the business as "the definitive guide for anyone looking to enter the restaurant industry!" Readers will finish this book knowing how to acquire a restaurant in a way that is less painful, more profitable, and delivers a better return on their investment.
Do the terms “small business loan” and “buying a restaurant” belong in the same sentence? Yes, if you use an expert restaurant broker that does his work up front.
In the last three years there has been less access to capital than ever before for acquiring a small business like a restaurant for sale. There are still options however and one source is the SBA loan program. The SBA is an independent federal agency created by congress in 1953. They are mandated by Congress to aid growth and expansion of small business. One element of that charter is the SBA loan program. The SBA does not actually lend money itself. Instead, it insures against risk for banks in the event of a default. They guarantee as much as 90% of a loan’s value for the lender.
Here are a few of the items you should be aware of when it comes to an SBA secured loan. Most of this can be found online at www.sba.org. If the following conditions can be met, the loan for buying a restaurant has a strong possibility of being funded.
The SBA program requires a restaurant have no less than three years, thirty-six consecutive months, of profitable operation.
The minimum books and records required will include both the tax returns and profit and loss statements.
Restaurant buyer requirements for SBA secured programs include all of the following:
1. The SBA will not approve any loan unless the owner is committed to finance at least 10% of the purchase price.
2. The SBA program requires that a restaurant buyer secure the loan with a second mortgage on your home. This is not negotiable in any circumstances we have seen. If you refuse to pledge your home for collateral on your business acquisition, don’t try this route for borrowing.
3. The SBA program also requires that they lien the furniture, fixtures, and equipment of the restaurant you are buying.
4. The SBA program requires a minimum amount of business experience.
6. The SBA requires that that net profit per month with add-backs divided by the loan payment per month must be 1.25 or higher.
7. Key person life insurance is usually required. This can take up to six weeks to obtain.
8. 9. Both the spouse and the applicant’s credit history will factor into the loan approval.
10. Lenders insist on the seller and buyer both signing IRS Form 4506-T to protect against fraud. Both the seller and buyer face IRS trouble if the tax forms are false.
11. A business plan will be required by the lender as part of the SBA process.
12. The applicant for the loan must be a legal resident of the United States.
13. The credit score of the applicant must normally be above 650 and the restaurant buyer cannot have an arrest record.
14. The applicant for the loan must have direct management experience to be approved in most instances.
The bad news is that the requirements for restaurant SBA lending are stringent. The good news is that if an expert restaurant broker has already submitted the business for pre-approval, it’s almost a sure thing to get the loan as long as you meet the restaurant buyer’s criteria listed above. Once you submit your paperwork to the bank, it’s a fast track to closing.
In short, when restaurant brokers advertises that a restaurant has already been pre-approved for lending you can be assured that it is an A+ listing with excellent records and profitability. The “pre-approval” portion of the lender work will wean out any restaurants for sale that don’t meet strict financial criteria.
Here's a listing offered by We Sell Restaurants that is Pre Approved for SBA Lending
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Eric and Robin Gagnon are industry experts and authors of Appetite for Acquisition. Appetite for Acquisition, their Guide to Buying a Restaurant was a 2012 Small Business Book Award Nominee and has been described in the business as "the definitive guide for anyone looking to enter the restaurant industry!" Readers will finish this book knowing how to acquire a restaurant in a way that is less painful, more profitable, and delivers a better return on their investment.
Putting a restaurant for sale on the market at the wrong price is more damaging than you think. There are finite numbers of qualified buyers and you get one chance to make a first impression.
Owners of too many restaurants for sale learn the hard way that listing at the wrong price is the single largest reason listings don’t sell. Here are the steps in an accurate restaurant valuation.
Step one.
Selling your restaurant begins by assembling the right information. An expert restaurant broker will need information from you before he can value your restaurant. If he doesn’t, beware of his expertise. Pricing your business without data is like a doctor diagnosing cancer over the phone. An accurate listing price is dependent on the restaurant valuation and will require analysis of the following:
- A year to date profit and loss statement on the restaurant for sale reflecting current conditions.
- The latest year’s tax return that is available.
- A list of the furniture, fixtures and equipment that will transfer in the sale.
If possible, send this to the broker in advance of your meeting so he has time to do an initial workup on the business for your valuation.
Step two.
Meet with the restaurant broker to review the financial information. Do not worry if the tax return or profit and loss statement shows negative earnings. A financial analysis will include reconciliation of “add-backs” or owner compensation that you received on the business to adjust for owner benefit. The person performing the restaurant valuation will ask questions to verify all the potential earnings for a new buyer including:
- What income (salary, distribution or other) was paid directly to you or a family member?
- What other expenses benefited you directly (such as restaurant paid health insurance, life insurance or car lease)?
- Were there any “one-time” or extraordinary expenses for last year (a HVAC or roof replacement, accounting expenses associated with an audit or legal expenses associated with a lawsuit).
Step three.
Walk the restaurant broker through the business so he can view it from a buyer’s point of view. He will also want to understand the condition of the furniture, fixtures and equipment. Listing a restaurant is not performed over the telephone. While a lot of research can be performed online, a broker needs to view the location, adjacent businesses and physical property. How can he or she explain the benefits of your listing to others without seeing it in person? He will also need to take photographs, a key selling feature for your listing.
Once these steps are complete, the broker should have a listing price for you. Expect that the restaurant will always be worth more to the seller than to anyone else. After all, you invested your blood, sweat and tears into building the business. If you’re in a low cash flow or negative cash flow position, you will probably be looking at a loss. That’s why it’s even more important to list at the right price and sell quickly. The more time it stays on the market, the longer you’re losing money and tied to the obligation on the lease.
An expert restaurant broker will be able to justify the pricing he recommends for the business. He can also share “comps” or comparable property sales with you. An expert in the field of restaurant valuation should have access to national comparable sale databases as well as access to local sales.
Once you’re comfortable with the valuation, move forward and list the restaurant as quickly as possible. Shopping for another broker that will give you a higher valuation can be a mistake. First, less experienced brokers may take the listing at the higher price. Ultimately, that means it will sit on the market until you ultimately reduce pricing to the level that will sell. Secondly, your listing becomes “stale” after sitting without offers for a period of time.
Put your restaurant on the market at the right price the first time. It will move quickly when priced to sell.
Hundreds of restaurant listings for sale listed at the right price. Here's a link to our latest listings.
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Eric and Robin Gagnon are industry experts and authors of Appetite for Acquisition. Appetite for Acquisition, their Guide to Buying a Restaurant was a 2012 Small Business Book Award Nominee and has been described in the business as "the definitive guide for anyone looking to enter the restaurant industry!" Readers will finish this book knowing how to acquire a restaurant in a way that is less painful, more profitable, and delivers a better return on their investment.