Should I draft a Quarterback or Receiver to sell my business? This restaurant broker has an opinion on the topic. What's yours?
It's the time of year when football fans are glued to the TV listening to sports commentators talk about NFL prospects waiting to be drafted. This highly speculative event is where players realize their lifetime dreams of being drafted into the "league." Team owners a lot of money each year for their scouting department to evaluate the talent of potential players. They make this investment with one goal in mind. Which player can help their organization WIN? The right draft pick can help a team WIN and increase the value of an organization.
The NFL draft puts a dollar value on each player position and the market value for each position is different. The team with the number #1 pick wants to get the most production and value for their pick. This is very similar to a seller that wants to sell their restaurant. They are choosing from a lineup of players (or brokers). Their challenge is to find the one who can help them WIN and increase the value of the transaction.
Quarterbacks are a highly specialized positions that can change the fortunes of a team. This position requires owners to pay a premium salaries. Kirk Cousins just signed a 3-year, $84 million dollar averaging $28 million a year and it’s ALL guaranteed! The highest paid Receiver only makes $17 million a year. Why would an owner pay a Quarterback 165% more than the top Receiver?
The answer is very easy. It’s called Value. That can be defined as “the regard that something is held to deserve; the importance, worth, or usefulness of something.” A Specialized Restaurant Broker is like a Quarterback. They bring more value than a generalized agent that is a "jack of all trade" selling anything from a day care center to a beauty salon. Making the wrong choice to sell your restaurant would be like drafting a Receiver that would not help you WIN.
Certified Restaurant Brokers quarterback the sales transaction from the beginning to the end. They communicate with the seller, buyer, bank lenders, landlords, CPA’s, Franchise, closing attorney, and sometimes vendors. Restaurant Brokers are valuation specialists and understand the cash flow and add backs of a restaurant situation. They understand the deal making process and know when an audible may have to be called to get the deal closed.
I played football at Morehouse College in Atlanta, Georgia and I did not get drafted to the NFL. On the other hand, I have restaurant sellers draft me every day to quarterback the sales transaction of their restaurants. I’m honored to represent these sellers and give them an opportunity to pursue their new life ambitions.
When it’s time for you to sell your restaurant make sure you draft the right person to represent you. It's not fantasy football and the right pick is critical. The right draft pick can be the difference between selling your business for the most money in the shortest period of time or waiting while the clock runs out on the field. Get the guy that can score a touchdown each and every time!