Advice for Buying a Restaurant and Selling a Restaurant

The Restaurant Brokers Report on Restaurant Deals for Valentine's Day 

Posted by Robin Gagnon on Feb 14, 2018 6:22:02 AM

Valentine's DayDining Deals.jpg

The most romantic day of the year is upon us. Many people plan for this day weeks in advance – roses are ordered in intricate color combinations, dinner reservations are made at the most exquisite of restaurants, and hotel accommodations at four-star hotels are confirmed. For the rest of us, it’s Valentine's Day and thanks to a radio discussion you heard on this morning’s commute, you have been reminded that you have not planned a single thing for you and your significant other.  To add insult to injury, you’re still recovering from Christmas, which means you must be Romeo on a budget. Fear not, hopeless (NOT helpless) romantic, the Restaurant Brokers have the scoop on restaurants where you can enjoy some serious discounts on Valentine’s Day.

 

Head on over to your local Romano’s Macaroni Grill to take advantage of their specials for two. For only $45, you and your sweetie can nosh on your choice of an appetizer, two entrees and a dessert to share. Romano’s isn’t skimping on their selections, either. There are numerous combos for you to choose from, but if it were up to us we would start with the Goat Cheese Peppadew Peppers, followed by a main dish of Grilled Salmon and Orzo, topped off with a slice of delicious Homemade Chocolate Cake. Couples will also have the option to purchase one of 12 select bottles of wine priced at only $25 per bottle – our fluttering eyes are focused on the Chloe Pinot Grigio. For $70 plus a tip you will be set until next February 14th with this Italian rendezvous.

Valentine’s Day can be a real bummer for the countless number of singles out there, but Firehouse Subs doesn’t want it to be. Head into your local Firehouse Subs on Valentine’s Day and grab one of their delicious hand-crafted subs, and enjoy a free dessert on the house. Choices include a delicious cookie or a brownie. Firehouse Subs wants you to enjoy a sweet treat so much this Valentine’s Day that they aren’t even requiring you to purchase anything to enjoy your free sweet treat – just snap a picture of their online coupon found here and head on in. If you ARE in a relationship and want to give your partner a great gift this year, considering buying them a Firehouse Subs franchise for sale! We have enough for everyone, and they can be found here.

If you ask the Restaurant Brokers, pizza is appropriate for any holiday, and Valentine’s Day is no exception. Hungry Howie’s agrees, which is why they are serving up piping hot heart-shaped personal pizzas for just $6.99. Toss in a toasty side of Three Cheese Howie Bread for just $6 and you and your darling have a great little meal for two. Again, if you want to go all out and be declared the Winner of Valentine’s Day 2018, you can surprise your date with a Hungry Howie’s franchise for sale of their own for dessert. Check out our franchise for sale listings here.

After you indulge in one of these decadent dinner delights (say that five times fast!), head on over to your local Dairy Queen for dessert. Just in time for Valentine’s Day they have collaborated with chocolate gods Ghirardelli to bring the masses two delicious treats: Dipped Strawberry Blizzard and Dipped Strawberry Cupid Cake. The blizzard is perfect for you to share with your mate, and the cake is perfect to take home after you’ve dined on a great meal. Did we mention the cake will last a few days, so you can be reminded of what a great decision you made each and every time you open the fridge!

There you have it – some awesome options for you and your babe to enjoy for the Valentine’s Day holiday. If you’re looking for a restaurant for sale during this holiday or any time of the year, the Restaurant Brokers have the most restaurant for sale listings. Click the link below to be taken to our restaurants for sale. You’ll fall in love with our listings and become a restaurant owner in no time! Happy Valentine’s Day!

Restaurants for Sale

Topics: buying a rstaurant

Marketplace Confidence, Low Interest Rates Driving Increased Business Transactions

Posted by Robin Gagnon on May 28, 2015 6:45:07 AM

The 1st Quarter 2015 Market Pulse Survey Report published by the International Business Brokers Association (IBBA), M&A Source and the Pepperdine Private Capital Market Project is out.  They report that "business transaction activity increased across all market sectors in the first quarter of 2015, driven by consumer and market confidence and low interest rates."

This data aligns with an earlier BizBuySell industry report showing 1st quarter of 2015 transaction levels ahead of last year. 

The latest data covers both businesses sold in Main Street markets (values under $2 million) and lower middle markets (values $2 million to $50 million).  The restaurant brokers are seeing even strong results in their "Main Street" transactions with an increase in transactions of 22% in the first quater of 2015. 

"Confidence is up across the board, and we're seeing that reflected in both buyers and sellers markets," said Robert K. Adams, Partner, Advanced Business Brokerage & Adams & Chebalo, LLC and member of IBBA / M&A Source.  Eric Gagnon of We Sell Restaurants says, "Confidence is high but we see this reflected in the credit market.  There is strong lending available for restaurants and in particular, franchise restaurants, that are driving the We Sell Restaurant activity levels."

Other key findings from the latest study include that nearly 6 out of 10 (59%) of Main StreEric_and_Robin_Crop_April_2013_Headshotet brokers characterize current buying conditions as a "Buyer's Market" versus a "Seller's Market."  On this point, Restaurant Broker Robin Gagnon of We Sell Restaurants says, "It is difficult to characterize the entire marketplace as advantaged toward either buyers or sellers.  We see each indidual deal and the circumstances dictate the deal terms.  With a willingness to get a deal to the table by both parties, there is a natural give and take on both sides."

According to the survey, "Business services led the Main Street market, appearing in the number one (or tied for first) spot for the most businesses sold in each sector. Consumer goods and personal services also held leading positions."   The earlier BizBuySell data found roughly 22% of all transactions in the first quarter were restaurants. 

The survey found that "Retirement ranks as the number one reason to sell across all Main Street sectors."  That finding is at odds with the restaurant brokerage industry according to Eric Gagnon, President of We Sell Restaurants.  "The hospitality industry is highly transactional one.  We see more units changing hands as people move into and out of the business in much shorter periods of time than is indicated by retirement. The resaons for the sale are often tied to lifestyle issues but retirement does not top the list."

Brokers surveyed also found a growth in new clients and optimism for new client engagements at "near its peak since the survey began for all market sectors."  Chief Marketing Officer for We Sell Restaurants, Robin Gagnon concurs saying, "We have seen traffic from new buyers at double digit increases for the entire fourth quarter of 2014 and the first quarter of 2015.  Buyers are actively pursuing opportunities in the marketplace and our lead generation efforts have definitely paid off

The Q1 2015 survey was completed by 231 business brokers and M&A advisors, representing 39 states. More than half of the respondents (57 percent) had at least 10 years of experience in the M&A industry. Participating advisors reported closing 143 Main Street market transactions and 20 lower middle market transactions in Q1 2015. The report can be found here: http://bschool.pepperdine.edu/about/people/faculty/appliedresearch/research/pcmsurvey/ 

Topics: buying a rstaurant

Buying a Restaurant Using Retirement Money

Posted by Robin Gagnon on Jan 19, 2012 10:25:00 PM

Using 401K for Buying a RestaurantThe 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.

Topics: buying a rstaurant, buying a restaurant, financing for restaurants

Assessing the needs of the Restaurant Buyer - Buying a Restaurant

Posted by Eric Gagnon on Nov 26, 2010 4:47:00 PM

Buying a restaurant means lifestyle choices for yourself and your family.Expert brokers at We Sell Restaurants explain how to identify your needs up front.

The subject of this week's radio show was the We Sell Restaurants Restaurant Assessment Tool. Designed to take you through a series of questions to help you understand what you want and which type of business fits your personal lifestyle.  This is vital to the restaurant buying process and a step that many buyers overlook. If you are honest in your answers,  you will be prepared to begin your search.  If you skip this step, you may become an "Internet dater" clicking here and there on everything that piques your interest.  The problem with this approach?  No broker will take you seriously.

 

This survey helps you rule out the wrong restaurants and zero in on the right ones. Take this short ten question test to understand the type of business that is perfect for you.

1)  What does my earnings requirement force me to focus on?

2) What type of lease or purchase situation do I want?

3) What kind of restaurant do I want?

4) How much money do I need to make to support my family?

5)  How much experience do I have?

6)  If I’m in charge of my own destiny by owning a business, what days and hours do I want to operate?

7)  What is the alcohol level I’m comfortable serving?

8) What’s my relationship status?

9)  How far am I willing to travel from my home to my business to work each day?

10) Where am I going to get the capital for my purchase?

Once you've completed this short survey, contact us to discuss your needs.  We'll be able to tell you which restaurants in our inventory are perfect for you.  If we don't have the perfect restaurant, we can represent you as a buyer with other broker's listings and find the right restaurant as well.

Topics: buying a rstaurant, restaurant buyer